A liquidation differs from a dissolution in 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

Liquidation refers to the process of closing a business, selling its assets, and using the proceeds to pay off its debts. Any remaining assets are then distributed to the owners or shareholders. This means the business will not continue, which is the key difference from dissolution, where the business might still continue after reorganization or restructuring.

A Liquidation Differs from a Dissolution in That in a Liquidation