Asked by Aparna Narayanan on Jun 03, 2024
Verified
The process of winding up the affairs of a partnership is referred to as realization.
Realization
The sale of assets when a partnership is being liquidated.
Winding Up
The process of liquidating a company's assets, paying off creditors, and distributing remaining assets to shareholders before dissolving the company.
- Attain knowledge of the processes entailed in dissolving partnerships, specifically regarding how cash is distributed and how partners' negative capital balances are addressed.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
False
Explanation :
The process of winding up the affairs of a partnership is referred to as dissolution. Realization refers to the conversion of assets into cash during the dissolution process.
Learning Objectives
- Attain knowledge of the processes entailed in dissolving partnerships, specifically regarding how cash is distributed and how partners' negative capital balances are addressed.
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