Sasha and Michelle Form a Partnership

question 138

Multiple Choice

Sasha and Michelle form a partnership. Sasha contributes $16,000 cash and merchandise inventory with a current market value of $4,000. While journalizing this transaction:

• A)Merchandise Inventory will be credited for $4,000.
• B)Merchandise Inventory will be debited for $4,000.
• C)Merchandise Inventory will be credited for $2,400.
• D)Merchandise Inventory will be debited for $2,400.

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Definitions:

Alexis De Tocqueville

A French political thinker and historian best known for his works "Democracy in America" (1835), where he explores American society, its democratic institutions, and its political culture.

Market Revolution

A period of economic transformation in the United States during the early 19th century, characterized by a shift from subsistence farming to large-scale agriculture, and the emergence of regional and national markets.

Skilled Craftsmen

Individuals who possess expert knowledge and proficiency in a particular craft or trade, often requiring manual dexterity and the use of tools.

Economic Freedom

The ability of individuals and businesses to engage in economic activities without undue government intervention, leading to greater prosperity and societal well-being.