David and Daniel Formed a Partnership

question 5

Multiple Choice

David and Daniel formed a partnership.David invested $12,000,cash;Daniel invested $7,000 cash and equipment with a fair value of $5,000.The proper entry to record this is to:

• A)debit Cash $19,000;debit Equipment $5,000;credit Capital $24,000.
• B)debit Cash $19,000;debit Equipment $5,000;credit Accounts Payable $24,000.
• C)debit Cash $19,000;debit Equipment $5,000;credit David's Capital $12,000;and credit Daniel's Capital $12,000.
• D)debit Cash $19,000;credit David's Capital $12,000;and credit Daniel's Capital $7,000.

---

Definitions:

Outside-in Change

An approach to change management that starts with external market or environmental sentiments and trends, then works inward to adjust organizational strategies, structures, and processes.

Inside-out Change

Transformation initiated from within an organization or individual, focusing on internal improvements or developments to effect external outcomes.

Transformational Change

A profound or radical change that fundamentally alters the culture, core values, and operations of an organization, often leading to a shift in its business direction.

Bottom-up Change

A change initiative that starts at the lower levels of an organization and seeks approval or acceptance from higher levels.