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Which of the Following Is Not an Assumption to Make

Question 34

Multiple Choice

Which of the following is not an assumption to make when determining safe payments during partnership liquidation?


A) ​Unsold non cash assets are assumed to be worthless
B) ​The partner with the highest capital balance will be the first to receive a safe payment
C) ​Partners will not have deficit balances
D) ​Liquidation expenses can exceed capital balances

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