In some liquidations,a partner's share of the loss is greater than his or her capital balance.In such a situation,
A)the partner must make up the deficit in his or her Capital account from personal assets.
B)if the partner does not have the cash to cover his or her obligations,the deficit is distributed according to the partners' stated ratios.
C)all partners have unlimited liability.
D)All of these choices.

Question

Quizplus · Accepted Answer

In a partnership, partners have unlimited liability, meaning they are responsible for covering any deficits from personal assets. If a partner cannot cover their share, the deficit is distributed among the remaining partners according to their profit-sharing ratios.

In Some Liquidations,a Partner's Share of the Loss Is Greater