Keith and Jim Are Partners

question 107

Multiple Choice

Keith and Jim are partners.Keith has a capital balance of $49,000 and Jim has a capital balance of $38,000.Bill invested $33,000 to acquire an ownership interest of 30%.Which of the following statements is true of this transaction?

• A)Keith and Jim received a bonus of $1,500 each.
• B)Bill received a bonus of $4,900.
• C)Keith and Jim received a bonus of $2,450 each.
• D)Bill received a bonus of $3,000.

Understand the fundamental components of the FASB conceptual framework.

Identify and describe the common forms of business ownership and their characteristics.

Recognize the role and influence of regulatory bodies like the SEC and IASB on accounting practices.

Understand the significance and application of the accounting equation.

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Definitions:

Anaphylactic Shock

A severe, potentially life-threatening allergic reaction characterized by sudden drop in blood pressure and difficulty breathing.

Metabolic Acidosis

A condition where the body produces too much acid, or the kidneys are not removing enough acid, causing a decrease in blood pH.

Stay Hydrated

The practice of ensuring adequate fluid intake to maintain healthy bodily functions and hydration levels.

Blood Sugar

The concentration of glucose present in the blood, essential for energy production but problematic when levels are too high or too low.