Which of the following involves settling accounts and liquidating assets of a partnership for the purpose of making distributions and ending the partnership?
A) Debt resolution
B) Bypassing formalities
C) Termination
D) Winding up

Question

Quizplus · Accepted Answer

Winding up is the process of settling accounts and liquidating assets of a partnership for the purpose of making distributions and ending the partnership. A is incorrect because debt resolution refers to the process of resolving issues related to outstanding debts. B is incorrect because bypassing formalities is not a process related to settling accounts and liquidating assets of a partnership. C is incorrect because termination refers to the process of ending a partnership or business entity, but it does not necessarily involve settling accounts and liquidating assets.

Which of the Following Involves Settling Accounts and Liquidating Assets