The Statement of Partners' Equity for the Allied Centre Reported

question 17

Multiple Choice

The Statement of Partners' Equity for the Allied Centre reported the following information in total: The partnership has three partners: Hum, Pippy, and Collis with ending capital balances in a ratio 40:20:40. What are the respective ending balances of the three partners?

• A) Hum, $40,000; Pippy, $20,000; Collis, $40,000
• B) Hum, $36,000: Pippy, $18,000; Collis, $36,000
• C) Hum, $68,000; Pippy, $34,000; Collis, $68,000
• D) Hum, $48,000; Pippy, $24,000; Collis, $48,000

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Definitions:

Merchandise Purchases Budget

A financial plan that estimates the cost of inventory a business needs to buy to meet its sales goals.

Master Budget

A comprehensive financial planning document that includes all of the smaller, individual budgets within a company, projecting all of its activities over a fiscal year.

Sales Budget

A detailed estimate of the sales revenue a company expects to earn in a specific period, including both volume and price.

Merchandise Purchases

Transactions related to buying inventory for resale, typically in a retail or wholesale business setting.