In General Terms, Which of the Following Statements Regarding Changes

question 2

Multiple Choice

In general terms, which of the following statements regarding changes in income inequality in the United States is correct?

• A) Inequality has increased substantially over the last 40 years as witnessed by the Gini coefficient increasing from about 0.1 in 1970 to over 0.7 in 2010.
• B) Inequality has increased slightly over the last 40 years as witnessed by the Gini coefficient increasing from below 0.4 in 1970 to over 0.45 in 2010.
• C) Inequality has decreased substantially over the last 40 years as witnessed by the Gini coefficient decreasing from about 0.5 in 1970 to almost 0.05 in 2010.
• D) Inequality has decreased substantially over the last 40 years as witnessed by the Gini coefficient decreasing from about 0.8 in 1970 to just over 0.25 in 2010.
• E) Inequality has stayed about the same over the last 40 years as witnessed by a Gini coefficient that has hovered around 0.6.

Perform journal entries to record partner investments and understand the implications of different types of contributions (cash, equipment, etc.).

Recognize and apply the closing entries to allocate net income among partners based on agreed-upon ratios or capital balances.

Understand the financial accounting implications of partner withdrawals and the difference between partner personal expenses and business expenses.

Identify and correct common errors in partnership accounting, including improper valuation and ignoring the income/loss agreement.