In the AD Partnership, Allen's Capital Is $140,000 and Daniel's

question 49

Multiple Choice

In the AD partnership, Allen's capital is $140,000 and Daniel's is $40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. Each of the following question is independent of the others.
Refer to the information provided above. David directly purchases a one-fifth interest by paying Allen $34,000 and Daniel $10,000. The land account is increased before David is admitted. By what amount is the land account increased?

• A) $40,000
• B) $10,000
• C) $36,000
• D) $20,000

Understand the principle of revenue recognition and its application to FOB shipping and destination.

Analyze and calculate cash flows from customer transactions.

Understand the impact of credit card sales and discounts on financial statements.

Recognize effective internal controls for cash management.

---

Definitions:

Directive Leadership

A leadership style characterized by leaders who give instructions, set clear goals, and expect compliance from their subordinates.

Path-goal Leadership Theory

A theory that postulates a leader's effectiveness is based on their ability to clear followers' paths to their goals with the appropriate leadership style, thus enhancing their performance and satisfaction.

Servant Leadership

This leadership philosophy focuses on the leader's primary role as serving the needs of others, prioritizing the well-being and development of their team members above their own.

Organizational Objectives

Specific goals a company aims to achieve, which guide its operations and strategic planning.