If Accounts Receivable Are Contributed When a Partnership Is Established

question 2

Multiple Choice

If accounts receivable are contributed when a partnership is established its fair value is recorded as the:

• A) gross amount.
• B) gross amount less a separate credit entry for allowance for doubtful debts.
• C) historical cost.
• D) disposal value.

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Definitions:

Law-abiding

Adhering to and respecting established laws and regulations.

Justification

The action of showing something to be right or reasonable, or the reasoning behind such a demonstration.

Wrongdoers

Individuals who act improperly or unlawfully, engaging in behavior that is morally, ethically, or legally incorrect.

Retributivists

Advocates of a theory of justice that holds that the best response to a crime is a punishment proportional to the offense, administered for its own sake rather than to serve an external purpose.