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Problem 1: What should happen when a partner's capital account balance drops below zero during partnership liquidation?
a. The other partners should file a legal suit against the partner with the deficit balance
b. The partner with the highest capital balance should contribute sufficient assets to eliminate the deficit
c. The deficit balance should be removed from the accounting records with only the remaining partners sharing in future gains and losses.
d. The partner with a deficit should contribute enough assets to offset the deficit balance.
Problem 2: It is the process of selling the assets, paying the liabilities, and distributing the remaining cash to the partners
a. Dissolution
b. Formation
c. incorporation
d. Liquidation
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