Selected Financial Statement Data for California Ltd, at Its December

question 3

Multiple Choice

Selected financial statement data for California Ltd, at its December 31 year end is below: $$\begin{array} { | l | r | r | } \hline & \mathbf { 2 0 1 8 } & \mathbf { 2 0 2 2 } \\\hline \text { Current Assets } & & \\\hline \text { Pash } & \$ 32,000 & \$ 21,750 \\\hline \text { Accounts Receivable } & \$ 247,500 & \$ 299,000 \\\hline \text { Invertory } & \$ 2,762,300 & \$ 2,668,425 \\\hline \text { Prepaid expenses } & \underline{ \$ 6 , 2 0 0 } & \underline{ \$9 , 875} \\\hline \text { Total Current Assets } & \underline{\$ 2,141,500 }& \underline{\$ 1,986,000} \\\hline \text { Current Liabilities } & \$ 3,048,000 & \$ 2,999,050 \\\hline \text { Net Credit Sales } & \$ 2,238,000 & \$ 2,448,000 \\\hline\end{array}$$ California's credit terms are net 30 days. A 2% discount can be taken if the bill is paid within 10 days from the invoice date. In 2018, California collects its accounts receivable

• A) Within the 30 days, as required by its credit terms
• B) After the 30-day terms passed
• C) Within the 10-day discount period
• D) More information is needed to answer this question
• E) Within the 20 days, as required by its credit term

Understand different methods for dividing net income in a partnership.

Apply journalizing techniques for the admission of a new partner into a partnership.

Analyze capital account adjustments after revaluation of assets and the admission of new partners.

Determine the impact of partnership agreements on profit-sharing ratios and capital interest.

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Definitions:

External Control

Influence or regulation by external factors or entities over an organization's or individual's actions and decisions.