A New Partner Was Admitted but the Assets Weren't Revalued

question 46

Multiple Choice

A new partner was admitted but the assets weren't revalued.A revaluation would have decreased the equity of the partner and partnership.This error would cause:

• A)future periods' net income to be understated.
• B)future periods' net income to be overstated.
• C)this period's end assets to be understated.
• D)new partner's capital to be overstated.

---

Definitions:

Chi-squared Distribution

A probability distribution used in hypothesis testing that is derived from the sum of the squares of k independent standard normal random variables.

Critical Value

A threshold in statistical testing that delineates the boundary for rejecting the null hypothesis.

Left-tailed Area

The area under the curve of a distribution to the left of a specified value, often used in hypothesis testing to determine the likelihood of observing a result at least as extreme as the one observed.

Degrees Of Freedom

The number of independent values or quantities that can vary in the calculation of a statistic, crucial for assessing the relevance of test results.