Reference no: EM132744851

Problem 1: In the preparation of a schedule of safe payments, cash withheld for future liquidation expenses, and unrecorded liabilities that may be discovered is treated as:

a. Operating expenses

b. Other Expense

c. Loss on realization

d. Possible loss

Problem 2: If a partner retires and receives cash that is less than his capital balance,

a. The difference should be credited to all the partners based on their capital ratio

b. The difference should be debited to all the partners based on their profit and loss ratio

c. The difference should be credited to the remaining partners based on their remaining profit and loss ratio

d. The difference should be debited to the remaining partners based on their remaining capital ratio