MatchingMatch the terms on the left with the descriptions on the right. Each description m...

Terms

Descriptions of Terms

1.

Dissolution

A.

Sale of the partnership assets, payment of the partnership

2.

Partner’s loss absorption

creditors, and the distribution of any remaining assets to

power

partners.

3.

Liquidation

B.

Allocation to other partners in their profit and loss-sharing

4.

Statement of partnership

ratio if the partner is personally insolvent.

realization and

C.

Schedule that shows how cash is to be distributed as it

liquidation

becomes available during liquidation process.

5.

Installment liquidation

D.

Computed by dividing a partner’s capital balance by that

6.

Cash distribution plan

partner’s loss-sharing ratio.

7.

Incorporation of a

E.

Revaluation of a partnership’s assets and liabilities to their

partnership

market values.

8.

Partner’s deficit in capital

F.

Change in the legal relationship between partners.

9.

Lump-sum liquidation

G.

End of the normal business function of the partnership.

1 0.

Safe payments to

H.

Liquidation in which all assets are converted into cash over a

partners

short time period, enabling all creditors to be paid, with any

remaining cash being distributed according to the partner’s

capital balance.

I.

Cash payments to partners computed on the assumption

that all noncash assets will be sold for nothing.

J.

Presents, in worksheet form, the effects of the liquidation

process on the balance sheet accounts of the partnership.

K.

Liquidation in which cash is periodically distributed to

partners during the liquidation process.