When a partnership is liquidated
A)The noncash assets are converted to cash.
B)Any gain or loss on liquidation is allocated to the partners' capital accounts.
C)The liabilities are paid.
D)The remaining cash is distributed to the partners.
E)All of these answers are correct.

Question

Quizplus · Accepted Answer

All of these answers are correct. When a partnership is liquidated, the noncash assets are converted to cash, the liabilities are paid, any gain or loss on liquidation is allocated to the partners' capital accounts, and the remaining cash is distributed to the partners.

When a Partnership Is Liquidated