23) The following is the priority sequence in which liquidation proceeds will be distributed

for a partnership

a) Partnership drawings, partnership liabilities, partnership loans, partnership

capital balances

b) Partnership liabilities, partnership loans, partnership capital balances

c) Partnership liabilities, partnership loans, partnership drawings, partnership

capital balance

d) Partnership liabilities, partnership capital balances, partnership loans

24) In a simple partnership liquidation, the last remaining cash distribution should be

made according to the ratio of

a) The individual partner’s profit and loss agreement

b) The individual partner's capital accounts, increased by partner loans to the

partnership

c) The individual partner’s capital accounts, increased by partnership loans to the

partners and decreased by partner loans to the partnership

d) The individual partner’s capital accounts, decreased by partnership loans to the

partners and increased by partner loans to the partnership

25) Which partner is considered the most vulnerable as a result of a computation of

vulnerability rankings?

a) The partner with the lowest vulnerability ranking, who also has the lowest loss

absorption potential

b) The partner with the lowest vulnerability ranking, who also has the highest loss

absorption potential

c) The partner with the highest vulnerability ratio, who also has the lowest loss

absorption potential

d) The partner with the highest vulnerability ranking, who also has the highest loss

absorption potential

26) A partner's maximum loss absorbable is calculated by

a) Dividing the partner's capital balance by his or her profit-and-loss-sharing

percentage

b) Multiplying the partner's capital balance by his or her profit-and-loss-sharing

percentage

c) Multiplying distributable assets by the partner's profit-sharing percentage

d) Dividing the partner's capital balance by his or her percentage interest in capital

27) In partnership liquidations, what are safe payments?

a) The amounts of distributions that can be made to the partners, after all creditors

have been paid in full

b) The amounts of distributions that can be made to the partners with assurance that

such amounts will not have to be returned to the partnership

c) The amounts of distributions that can be made to the partners, after all non-cash

assets have been adjusted to fair market value

d) All the above are examples of the safe payments concept