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.

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Definitions:

Glucose

A simple sugar that is an important energy source in living organisms and is a component of many carbohydrates.

Urethra

A tube that connects the urinary bladder to the urinary meatus for the removal of fluids from the body.

Meatus

A natural passage or opening in the body, such as the external opening of the urethra.

Medulla

The inner region of an organ or tissue, especially the medulla oblongata in the brain or the inner part of the kidney.