Olivia Greer Is a Partner in Made for You

question 127

Multiple Choice

Olivia Greer is a partner in Made for You. An analysis of Greer's capital account indicates that during the most recent year, she withdrew $30,000 from the partnership. Her share of the partnership's net loss was $16,000 and she made an additional equity contribution of $10,000. Her capital account ended the year at $150,000. What was her capital balance at the beginning of the year?

• A) $186,000
• B) $196,000
• C) $170,000
• D) $180,000
• E) $154,000

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Definitions:

Transferor

The entity or person that transfers assets, obligations, or rights to another party.

Allowance Method

An accounting technique that estimates and deducts accounts receivable that are not expected to be collected to better represent net realizable values.

Uncollectible Accounts

Accounts receivable that are deemed to be uncollectible, leading to their removal from the accounts through a write-off process.

Write Off

The accounting action of declaring that an asset is partially or completely worthless.