Which of the following items are important in the determination of safe installment payments to partners?
I.Deficits created in capital accounts are distributed to the remaining partners.
II.All unsold noncash assets are assumed to be worthless.

Question

Quizplus · Accepted Answer

Both statements are important. I ensures that any deficits are covered by remaining partners, maintaining equity balance. II assumes worst-case scenario for asset value, ensuring conservative payment calculations.

Which of the Following Items Are Important in the Determination