Which of the following statements is(are) true? I. In the calculation of the loss absorption...
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Accounting
Which of the following statements is(are) true?
I. In the calculation of the loss absorption power for a partner, a partner's loan balance (an amount that is owed by the partnership) should be added to the partner's capital balance.
II. In liquidation, a partner's loan balance (an amount that is owed by the partnership) should be paid to the partner as a creditor of the partnership after the outside creditors.
A.II only
b.Both I and II
c.I only
D.Neither I nor II
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