Alex, Brad, and Carl Are Partners

question 132

Multiple Choice

Alex, Brad, and Carl are partners. The profit and rule sharing rule between them is 4:3:3 in the alphabetical order. The partnership incurs a net loss of $100,000. Before preparing the closing journal entry the:

• A)Income Summary account will have a debit balance of $100,000.
• B)Alex, Capital account will have a debit balance of $40,000.
• C)Alex, Capital account will have a credit balance of $40,000.
• D)Carl, Capital account will have a debit balance of $30,000.

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Definitions:

Kohlberg

A psychologist known for his theory on the stages of moral development, which proposes that individuals progress through a series of ethical reasoning levels as they age.

Connectiveness

The state or condition of being connected or interrelated, often referring to the ability to establish and maintain relationships with others.

Caring

The act of showing concern for others, offering support, and being attentive to their needs and well-being.

Audit Studies

Research experiments that measure differential treatment toward individuals or groups by altering their race, gender, or other attributes while keeping all other characteristics constant.