Partners Acer and Barr Have Capital Balances in a Partnership

question 169

Multiple Choice

Partners Acer and Barr have capital balances in a partnership of $40,000 and $60,000, respectively. They agree to share profits and losses as follows: If net loss for the year was $2,000, what will be the distribution to Barr?

• A) $12,000 income
• B) $1,000 income
• C) $1,000 loss
• D) $2,000 loss

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Definitions:

Activation-Synthesis

A theory of dreaming that suggests dreams are the result of the cerebral cortex interpreting random signals from the lower brain during REM sleep.

Reticular Formation

A network of neurons in the brainstem that's involved in arousal, wakefulness, and transmitting sensory information to the brain.

REM Sleep

Sleep characterized by rapid eye movements, EEG patterns similar to wakefulness, speeded heart rate and respiration, near-paralysis of skeletal muscles, and highly visual dreams.

Rapid Eye Movements

Quick, jerky movements of the eyes that occur during certain stages of sleep, especially REM sleep, associated with dreaming.