Which of the Following Is True When a New Partner

question 24

Multiple Choice

Which of the following is true when a new partner is admitted by purchasing an existing partner's interest?

• A)Only the transfer of cash from the new partner to the existing partner is recorded.
• B)Admission of the new partner affects the total asset amount.
• C)Admission of the new partner affects the total equity amount.
• D)The only journal entry the partnership records is the transfer of partner's capital.

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity by speeding up the heart rate, increasing blood pressure, and dilating the pupils, among other actions.

Central

Pertaining to or situated at the center or most important part of something.

Somatic

Relating to the body, especially as distinct from the mind.

Parasympathetic

A branch of the autonomic nervous system that conserves energy by slowing the heart rate, increasing intestinal and gland activity, and relaxing sphincter muscles.