At the end of a partnership liquidation, how is any remaining cash distributed to the partners?
A) Based on the individual partners' final capital balances.
B) Based on their share of profits and losses.
C) Equally.
D) Based on the length of time the partner was with the partnership.
E) Based on the initial investment made by each partner.

Question

Quizplus · Accepted Answer

At the end of a partnership liquidation, any remaining cash is distributed to the partners based on their final capital balances, which reflect their share of the partnership's net assets after all liabilities have been settled.

At the End of a Partnership Liquidation, How Is Any