Partnership Liquidation Flashcards
1
Q
Formation of a NEW PARTNERSHIP
A
PARTNERSHIP DISSOLUTION
2
Q
Closure of the EXISTING PARTNERSHIP
A
PARTNERSHIP LIQUIDATION
3
Q
It is the process of converting the NON-CASH ASSETS into cash.
A
Liquidation
4
Q
Liabilities > Assets
The partner is insolvent when its balance is NEGATIVE.
A
Capital Deficiency / Insolvent
5
Q
When the partner is PERSONALLY SOLVENT
A
Ability to contribute
6
Q
When the partner is PERSONALLY INSOLVENT
*Allocate the capital deficiency among the solvent partners
A
When the problem is silent
