| A | B |
|---|
| Partnership Agreement | A written agreement setting forth the conditions under which a partnership is to operate |
| Mutual agency | The right of all partners to contract for a partnership |
| goodwill | The value of a business in excess of the total investment of owners |
| dissolution | a change in the membership of a partnership |
| liquidation | the process of ending a partnership and the business |
| partnership | ann association of two or more persons to operate, as co-owners, a business for profit. |
| realization | the process of selling assets for cash |
| Distribution of net income statement | a partnership financial statement showing distribution of net income or net loss to partners. |
| deficit | the amount by which allowances to partners exceed net income. |
| Owners' equity statement | a financial statement that summarizes the changes in owners' equity during a fiscal period. |
| liquidation of a partnership | the process of paying a partnership's liabilities and distributing remaining assets to the partners. |
