Farrell and Jimmy Enter into a Partnership Agreement on May

question 71

Multiple Choice

Farrell and Jimmy enter into a partnership agreement on May 1, 2015. Farrell contributes $50,000 and Jimmy contributes $150,000 as their capital contributions. They decide to share profits and losses in the ratio of their respective capital account balances. The net loss for the year ended December 31, 2015 is $40,000. The capital account of Farrell should be ________ with the amount of loss.

• A)debited
• B)credited
• C)increased
• D)halved

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Definitions:

Operating Load

The average workload or stress placed on a machine or system during normal operation.

Articulation Points

In graph theory, points that, if removed, increase the number of connected components, indicating critical points in structural or network designs.

A-Train Combination

A specific truck combination consisting of a tractor unit connected to two trailers linked by a dolly, arranged in a format resembling the letter 'A'.

Electrical Current Load

The total current drawn by all electrical devices in a circuit or system.