A Change in Total Partners' Capital May Occur from All

question 114

Multiple Choice

A change in total partners' capital may occur from all of the following EXCEPT

• A) additional capital investments in the partnership.
• B) the sale of a partnership interest by a partner to an outside party.
• C) the use of partnership cash to pay salaries to the partners.
• D) the use of partnership cash to purchase new office equipment for a new partner.

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Definitions:

Lessee's Right

Legal entitlements granted to a lessee, such as the use of property under a lease agreement, subject to certain conditions.

Nonconforming Goods

Items delivered under a contract that fail to meet the standards or specifications agreed upon by the contracting parties.

Breach

The violation of a legal obligation, condition, or duty, typically in the context of a contract.

Badly Defective

Refers to products or systems that have significant flaws or defects, severely affecting their performance, safety, or utility.