Question

The actual value of liability is the present value of liability, the retiring partner is entitled to share the profit.

• A. more than
• B. less than
• C. more or less than
• D. equal to

Answer 1

The correct option is B less than

The actual value of liability is less than the present value of liability, the retiring partner is entitled to share the profit. As reduction in the value of liability will result in profit.