Reviews the book "Management Accounting: A Decision Emphasis," 3rd ed., by Don T. DeCoster and Eldon L. Schafer.

This article focuses on determining priorities for cash distribution in partnership liquidation. Students in the Principles of accounting course are introduced in partnership liquidation to the problem of cash distribution using a situation in which all assets are sold at once, liabilities are liquidated, and cash is distributed to the partners cash is distributed to the partners. Priority order has no importance but it points out, and the instructor should emphasize, that payment of cash on the basis of the capital account balances is now equitable because gains and losses have been distributed according to the partnership profit and loss sharing ratio. The author has developed another method which compares percentage of capital to the profit and loss-sharing ratio. By inspection it can be seen that the capital balances are not in the same ratio as the profit and loss-sharing ratios. Although it could be seen by inspection that the capital account balances are not in the profit and loss-sharing ratio the computation shows us what the capital account balance ratios are.