A liquidation differs from a dissolution is that in a liquidation
A) the business will not continue
B) assets may be revalued
C) gains and losses are distributed according to the partnership agreement
D) there may be an adjustment of partners' Capital accounts

Question

Quizplus · Accepted Answer

In a liquidation, the business is terminated and the assets are sold off to pay off debts and distribute remaining profits to partners. This is in contrast to a dissolution, where the business may continue in some form or be taken over by a new entity.

A Liquidation Differs from a Dissolution Is That in a Liquidation