A Partnership Is Formed with 4 Partners Named Wells, Bates

question 54

Multiple Choice

A partnership is formed with 4 partners named Wells, Bates, McCollum and Zhang. The partnership agreement specifies that profits and losses are shared in a ratio of 1:1:2:4, respectively. At the end of the first year, the partnership earned profit of $290 000. What amount will be credited to the capital account for Zhang?

• A)$36 250
• B)$145 000
• C)$72 500
• D)$32 222

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Definitions:

Stylistic Device

Techniques used by writers and speakers to give an expressive, effective, and creative form to their works or speech.

De-emphasize

De-emphasize means to reduce the significance, attention, or stress given to a particular element or aspect within communication or presentation.

Active Voice

A grammatical structure where the subject of the sentence performs the action expressed by the verb.

Passive Voice

A grammatical voice where the subject of the sentence is acted upon by the verb, often used to remove focus from the subject or to create a sense of generality.