Ruby and Anita Are Partners

question 19

Multiple Choice

Ruby and Anita are partners. Ruby has a capital balance of $250,000 and Anita has a capital balance of $200,000. Denis invests a building with a current market value of $150,000 to acquire an interest in the new partnership. Which of the following is true of the journal entry to record this transaction? (Assume no bonus to any partner.)

• A)Building will be debited for $150,000, Ruby, Capital and Anita, Capital will be credited for $75,000 each.
• B)Building will be debited for $150,000 and Denis, Capital will be credited for $150,000.
• C)Ruby, Capital and Anita, Capital will be debited for $75,000 each and Denis, Capital will be credited for $150,000.
• D)Ruby, Capital and Anita, Capital will be credited for $75,000 each and Denis, Capital will be debited for $150,000.

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Definitions:

Operational Definition

A clear, detailed description of how a research variable is measured or manipulated in an experiment.

Falsifiability

A principle in the philosophy of science that suggests a statement or theory must be capable of being proven false as a criterion for determining its scientific validity.

Circularity

The property of being circular or having a circular logic, often referring to arguments or reasoning where the conclusion is assumed in one of the premises.

Inter-rater Reliability

A measure of consistency between different observers or raters in the assessment of the same phenomenon.