Edwin and Darren Have Decided to Form a Partnership

question 3

Multiple Choice

Edwin and Darren have decided to form a partnership. Edwin contributes $80,000 cash and merchandise inventory with a current market value of $20,000. Darren contributes $2,100 cash and office furniture with a current market value of $2,800. While journalizing this transaction:

• A)Office Furniture will be debited for $1,120.
• B)Office Furniture will be credited for $2,800.
• C)Office Furniture will be debited for $2,800.
• D)Office Furniture will be credited for $1,120.

Understand the circumstances under which accounting principles can be changed and the justification required for such changes.

Grasp the significance of cost constraint in relation to the value of information provided in financial statements.

Understand the basic concepts and purpose of accounting.

Identify the internal and external users of accounting information.

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Definitions:

Normally-open

Refers to a switch or valve that is in an open state, allowing passage or flow, when not actuated.

Energized-to-run

A condition where equipment needs electrical power applied to start operating.

Torque

A measure of rotational force, indicating the power an engine or motor generates to turn a shaft or wheel, crucial in determining a vehicle's acceleration and load-carrying capacity.

Output Split

Output Split is a term used in powertrain technology to describe a method of distributing power output between different pathways or components, such as in hybrid vehicles.