Which of the Following Is True Regarding Decisions Requiring Unanimous

question 36

Multiple Choice

Which of the following is true regarding decisions requiring unanimous agreement among the partners, when the articles of partnership do not address the matter?

• A) A decision to change some element of the partnership agreement, a decision to admit a new partner, and a decision to alter the nature of the firm's business all require unanimous agreement among the partners.
• B) A decision to change some element of the partnership agreement requires unanimous agreement, but a decision to admit a new partner and a decision to alter the nature of the firm's business may be made by majority vote.
• C) A decision to change some element of the partnership agreement and a decision to admit a new partner require unanimous agreement among the partners, but a decision to alter the nature of the firm's business may be made by majority vote.
• D) A decision to admit a new partner and a decision to alter the nature of the firm's business require unanimous agreement among the partners, but a decision to change some element of the partnership agreement may be made by majority vote.
• E) All decisions are made by majority vote and none require unanimous agreement.

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Definitions:

Bad Debt Expense

An expense account that represents amounts deemed uncollectible from credit sales and highlights credit losses in financial statements.

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts is a contra-asset account that reflects the estimated amount of accounts receivable which may not be collectible.

Credit Sales

Transactions in which goods or services are sold and payment is deferred, allowing customers to purchase products or services on account.

Uncollectible Accounts

Accounts receivable that are recognized as uncollectible losses due to the inability to collect from the debtor.