If the share of losses on realization of the sale of noncash assets exceed the balance in a partner's capital account, the resulting balance is called a deficiency.

Question

Quizplus · Accepted Answer

This statement is true. When the share of losses on realization of the sale of noncash assets exceeds the balance in a partner's capital account, the resulting balance is a deficiency, which means that the partner owes money to the partnership.

If the Share of Losses on Realization of the Sale