Which of the following statements is true concerning the distribution of safe pa

Question

Which of the following statements is true concerning the distribution of safe payments? A)There are no safe payments until the liquidation is complete. B)The distribution of safe payments may only be made after all liabilities have been paid. C)Safe payments are equal to the recorded capital balances of partners with positive capital balances. D) In computing safe payments, partners with positive capital balances are assumed to absorb an equal share of any deficit balance(s). E)The distribution of safe payments assumes that any capital deficit balances will prove to be a total loss to the partnership.

Explanation / Answer

Te answer is

E)The distribution of safe payments assumes that any capital deficit balances will prove to be a total loss to the partnership.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.