Which of the Following Is True About the Capital Contributions

question 84

Multiple Choice

Which of the following is true about the capital contributions of members to an LLC?

• A) Capital contributions must be made in the form of cash.
• B) An unfulfilled promise to make a capital contribution is generally unenforceable.
• C) Members are required to make equal contributions in order to maintain their limited liability.
• D) A promise by a member to contribute services is excused if the member is unable to perform the particular services promised.
• E) A member who promised to make a capital contribution is not discharged from the promise if the member dies without having made the contribution.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that is globally accepted for preparing financial statements.

Balance Sheet Order

The sequence in which assets, liabilities, and equity are presented in the balance sheet, typically starting with current assets and liabilities.

Noncurrent Assets

Long-term assets that are not expected to be converted into cash within one year or the operating cycle, such as property, plant, and equipment.

IASB and FASB

International Accounting Standards Board and Financial Accounting Standards Board, respectively, setting and promoting accounting standards.