Which of the Following Statements Is Correct

question 62

Multiple Choice

Which of the following statements is correct?

• A)If a new partner invests cash in an existing partnership and a bonus is given to a new partner, the old partners' capital accounts increase.
• B)When a new partner is admitted to an existing partnership upon an investment of cash, the new partner's capital account may appropriately be debited for an amount other than the amount of cash invested.
• C)The partnership agreement should include steps to follow if a partner withdraws from the partnership.
• D)When a new partner is admitted to an existing partnership upon an investment of cash, the new partner's capital account will always equal the amount of cash the new partner invested.

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Definitions:

Personal Qualifications

The abilities, experience, and educational background that make an individual suitable for a particular job or task.

Soft Skills

Personal attributes and interpersonal skills that determine a person's ability to effectively interact with others, such as communication and empathy.

Prioritize

The action of arranging tasks or items in order of importance or urgency.

Thinking Skills

Cognitive capabilities that allow individuals to process information, solve problems, and make decisions.