Partnership Installment Liquidation | Safe Payment Approach | Advanced Accounting CPA Exam FAR
Channel: Farhat Lectures. The # 1 CPA & Accounting Courses
Date: 2019-08-05

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Installment liquidation is used instead of the immediate conversion of noncash partnership assets to cash under a simple liquidation, it is sometimes advantageous for a partnership to extend the conversion over several months.

Safe payment approach is when computing how cash is to be distributed to the partners before all assets are disposed of, care must be taken to ensure that the partners’ remaining capital balances will be adequate to absorb any potential loss.

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