In the computation of a partner's Loss Absorption Power (LAP),the individual partner's capital balance and profit-and-loss percentage are used in which of the following ways?

Name: In the computation of a partner's Loss Absorption Power (LAP),the individual partner's capital balance and profit-and-loss percentage are used in which of the following ways?
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Quizplus · Accepted Answer

The Loss Absorption Power (LAP) of a partner is calculated by multiplying the partner's capital balance by their profit-and-loss sharing percentage.

In the Computation of a Partner's Loss Absorption Power (LAP),the