Adam,Bill and Charlie Are Partners

question 77

Multiple Choice

Adam,Bill and Charlie are partners.The profit and rule sharing rule between them is 3:4:4,with Bill getting the most and Adam getting the least.The partnership incurs a net loss of $18,000.While closing the Income summary:

• A)Charlie,capital will be debited for $6545.
• B)Adam,capital will be debited for $6545.
• C)Income summary will be credited for $6545.
• D)Adam,capital will be credited for $6545.

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Definitions:

Investor Sentiment

The overall attitude of investors towards a particular security or financial market, which can influence trading decisions and market movements.

Efficient Frontier

The efficient frontier is a concept in modern portfolio theory representing those portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

Minimum Risk Portfolios

Investment strategies that aim to minimize the overall risk of a portfolio through diversification and asset allocation.

Expected Returns

The anticipated profit or loss from an investment over a specific period.