The Statement of Partners' Equity Explains

question 37

Multiple Choice

The Statement of Partners' Equity explains

• A) the amount of legal liability of each of the partners.
• B) the types of assets invested in the business by each partner.
• C) how the partnership will be capitalized if a new partner is admitted to the partnership.
• D) the changes in each partner's capital account and in total partnership capital during a period.

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Definitions:

Agency Shop

Union security arrangement that requires the payment of union dues but not union membership.

Taft-Hartley Act

A 1947 federal law in the United States that restricts the activities and power of labor unions.

Unfair Labor Practice

Actions by employers or labor unions that violate the rights of workers or the regulations governing labor relations.

Closed Shop

Union security arrangement under which a person must be a union member before being hired; illegal for those covered by the National Labor Relations Act.