The Summarized Balances of the Accounts of RST Partnership on December

question 5

Multiple Choice

The summarized balances of the accounts of RST partnership on December 31, 2014, are as follows: $\begin{array}{c}\begin{array}{lll}\text{Assest}\\\text { Cash } &\$30,000\\\text { Noncash } &180,000\\\\\\\text { Total Assets }&\$210,000\end{array}\begin{array}{lll}\text {Liabilities and Equity}\\\text {Liabilities}&\$30,000\\\text {R, Capital}&90,000\\\text {S, Capital}&60,000\\\text {T, Capital}&30,000\\\text {Total Lia \& Equities}&\$210,000\end{array}\end{array}$
The agreed upon profit/loss ratio is 50:40:10, respectively.Using the information given above, which one of the following amounts, if any, is the loss absorption potential of partner S as of December 31, 2014?

• A)$60,000
• B)$70,000
• C)$150,000
• D)$240,000

Understand the foundation of correlation and its measurement through correlation coefficients.

Apply the concept of statistical reasoning to generalize from samples to populations.

Understand the impact of recruitment and selection processes on job applicants' perceptions.

Comprehend the significance of fair and unbiased performance appraisals.

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Definitions:

Insurance Agent

A professional who sells insurance policies and advises clients on insurance matters.

Law Merchant

A body of commercial law that merchants developed over centuries, based on common practices and used to resolve disputes.

Magna Carta

A charter of liberties to which the English barons forced King John to give his assent in 1215; a document constituting a fundamental guarantee of rights and privileges.

Safe Passage

The right or permission to traverse a specific area or domain without harm or obstruction.