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Find the maximum loss absorption can be derived by

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Reference no: EM132745040

Problem 1: In liquidation, the liabilities of the partnership should be paid

a. after revaluation of assets.
b. before any sale of assets.
c. before the distribution of cash to partners.
d. none of the above.

Problem 2: In preparing the cash priority program, the maximum loss absorption can be derived by

a. Multiplying the total interest of the partner in the partnership by his profit and loss percentage
b. Multiplying the capital balance of the partner by his profit and loss percentage
c. Dividing the total interest of the partner in the partnership by his profit and loss percentage
d. Dividing the capital balance of the partner by his profit and loss percentage

Reference no: EM132745040

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