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

Question

Quizplus · Accepted Answer

A liquidation involves the winding up of the business, meaning that it will not continue. In contrast, a dissolution only terminates the partnership but may allow for the business to continue with a new partnership or ownership structure. The other choices may apply to either liquidation or dissolution, so they do not differentiate between the two.

A Liquidation Differs from a Dissolution in That in a Liquidation