When a partnership is liquidated:
A) The remaining cash is distributed to the partners.
B) Any gain or loss on liquidation is allocated to the partners' capital accounts.
C) The noncash assets are converted to cash.
D) The liabilities are paid.
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

In a partnership liquidation, all of these steps occur: noncash assets are converted to cash, liabilities are paid, any gain or loss is allocated to the partners' capital accounts, and the remaining cash is distributed to the partners.

When a Partnership Is Liquidated