Which of the Following Is True When a New Partner

question 46

Multiple Choice

Which of the following is true when a new partner is admitted by purchasing an existing partner's interest?

• A)Only the transfer of cash from the new partner to the existing partner is recorded.
• B)Admission of the partner affects only the amount of total assets.
• C)Admission of the partner affects the total equity amount.
• D)The only journal entry the partnership records is the transfer of partner's capital.

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Definitions:

Consumer Behavior

The study of how individual customers, groups, or organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.

Products

Goods or services offered by a business to satisfy consumer needs, wants, or demands.

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Intangible products provided to consumers or businesses, such as education, healthcare, and financial advising, which satisfy needs or wants.

Information Provided

The data or insights offered to help inform decisions, often presented through various channels including reports, websites, and personal communication.