### Analyzing the Statement

1. **Understanding Partnership Liquidation**: In a partnership liquidation, the partnership's assets are to be sold off or distributed among the partners. This process involves transforming the partnership’s non-cash assets into cash or distributing them accordingly.

2. **Classes of Assets**: The statement claims that there are "only two classes of assets" – cash and non-cash assets. However, while cash and non-cash assets are indeed primary categories, non-cash assets can include various items such as inventory, accounts receivable, or property, which can further be divided into subcategories.

3. **Reevaluation of the Statement**: The key point to consider is whether the only classes of assets are limited to cash and non-cash. In practice, during liquidation, a partnership may also deal with uniquely categorized assets based on their nature or types beyond just these two classifications.

### Conclusion

Based on the analysis and understanding of partnership liquidation, the statement oversimplifies the asset classification. Therefore, the correct answer is:

**Final Answer**: False

Question

### Analyzing the Statement

1. **Understanding Partnership Liquidation**: In a partnership liquidation, the partnership's assets are to be sold off or distributed among the partners. This process involves transforming the partnership’s non-cash assets into cash or distributing them accordingly.

2. **Classes of Assets**: The statement claims that there are "only two classes of assets" – cash and non-cash assets. However, while cash and non-cash assets are indeed primary categories, non-cash assets can include various items such as inventory, accounts receivable, or property, which can further be divided into subcategories.

3. **Reevaluation of the Statement**: The key point to consider is whether the only classes of assets are limited to cash and non-cash. In practice, during liquidation, a partnership may also deal with uniquely categorized assets based on their nature or types beyond just these two classifications.

### Conclusion

Based on the analysis and understanding of partnership liquidation, the statement oversimplifies the asset classification. Therefore, the correct answer is:

**Final Answer**: False

Knowee AI · Accepted Answer

### Analyzing the Statement

1. **Understanding Partnership Liquidation**: In a partnership liquidation, the partnership's assets are to be sold off or distributed among the partners. This process involves transforming the partnership’s non-cash assets into cash or distributing them accordingly.

2. **Classes of Assets**: The statement claims that there are "only two classes of assets" – cash and non-cash assets. However, while cash and non-cash assets are indeed primary categories, non-cash assets can include various items such as inventory, accounts receivable, or property, which can further be divided into subcategories.

3. **Reevaluation of the Statement**: The key point to consider is whether the only classes of assets are limited to cash and non-cash. In practice, during liquidation, a partnership may also deal with uniquely categorized assets based on their nature or types beyond just these two classifications.

### Conclusion

Based on the analysis and understanding of partnership liquidation, the statement oversimplifies the asset classification. Therefore, the correct answer is:

**Final Answer**: False

In a statement of partnership liquidation, there are only two classes of assets – cash and non-cash assetsGroup of answer choicesTrueFalse

Question

In a statement of partnership liquidation, there are only two classes of assets – cash and non-cash assets

Solution

Analyzing the Statement

Conclusion

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