Amber Contributes, as Part of Her Initial Investment, Accounts Receivable

question 34

Multiple Choice

Amber contributes, as part of her initial investment, accounts receivable with an allowance for doubtful accounts. Which of the following reflects a proper treatment?

• A) The balance of the accounts receivable account should be recorded on the books of the partnership at its net realizable value.
• B) The allowance account may be set up on the books of the partnership because it relates to the existing accounts that are being contributed.
• C) The allowance account should not be carried onto the books of the partnership.
• D) The accounts receivable and allowance should not be recorded on the books of the partnership because a partner must invest cash in the business.

---

Definitions:

Cardiac Cycle

The sequence of events that occur in the heart during one complete heartbeat, encompassing both diastole and systole phases.

Left Atrium

One of the four chambers of the heart, which receives oxygenated blood from the lungs.

Ventricle

One of the two lower chambers of the heart that receive blood from the atria and pump it out to the lungs or the rest of the body.

Cardiac Cycle

The series of events that occur from the beginning of one heartbeat to the beginning of the next, including systole (contraction of the heart muscle) and diastole (relaxation of the heart muscle).