Farrell and Jimmy Enter into a Partnership Agreement on May

question 58

Multiple Choice

Farrell and Jimmy enter into a partnership agreement on May 1,2017.Farrell contributes $50,000 and Jimmy contributes $150,000 as their capital contributions.They decide to share profits and losses in the ratio of their respective capital account balances.The net loss for the year ended December 31,2017 is $40,000.The capital account of Farrell should be ________ with the amount of loss.

• A)debited
• B)credited
• C)increased
• D)halved

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Definitions:

Oligocene Era

A geologic epoch of the Paleogene Period, occurring from about 34 to 23 million years ago, during which mammals and birds evolved considerably.

Continental Drift

In the theory of plate tectonics, the movement of continents embedded in underlying plates on the earth's surface in relation to one another over the history of life on earth.

Climate Change

Significant and long-term changes in the Earth's climate, including global warming, largely attributed to human activities.

Human History

The recorded or studied past of the human species, encompassing historical events, cultures, advancements, and transformations through time.