No capital deficiency means that all partners have credit balances prior to the final distribution of cash.

Name: No capital deficiency means that all partners have credit balances prior to the final distribution of cash.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A capital deficiency occurs when a partner's capital account has a debit balance. If there is no capital deficiency, it means all partners have credit balances, indicating they have positive capital accounts before the final cash distribution.

No Capital Deficiency Means That All Partners Have Credit Balances