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In What Order Should the Partnership's Debts Be Paid

Question 78

Multiple Choice

In what order should the partnership's debts be paid?


A) The loan to Ava,then the bank loan,then the capital to the partners.
B) The bank loan,then the loan to Ava,then the capital to the partners.
C) The capital to the partners,then the bank loan,then the loan to Ava.
D) The bank loan,then the capital to the partners,then the loan to Ava.
E) The order of payment of debts does not matter.

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