Review QUESTIONS 1. Define Liquidation.2.Differentiate dissolution from liquidation. 4.What is the order of preference in the liquidation of a partnership? 3.What does the term "realization" mean? "capital deficiency"? 5.Explain the "right of offset" as applied in the liquidation of a partnership. 6.Differentiate lump-sum method from installment method of liquidation. 7.List the pro-forma entries used in recording the steps in liquidation. 8.state the procedures in lump-sum liquidation. 9.What is the basis for distributing gain or loss on realization? 10.In case of a partner's capital deficiency, what is the order of priority to be followed to eliminate it?11.Who is preferred as to partnership assets?as to the partner's separate assets?12. State the procedures in installment liquidation.13. Differentiate restricted from free interests. 14.What is a cash priority program? How does one go about preparing one? 15.What is a loss absorption balance? What does it indicate? 16.Is there any situation wherein the profit and loss ratio may be used as the basis of cash payments to partners? Explain. ​