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:

American Exceptionalism

The idea that the United States has a unique character and role in the world, often associated with the country's history, political values, and institutions.

Military Prowess

The demonstrated skill, capability, and effectiveness of a country's military in defense and warfare situations.

Economic Recovery

A period of increasing business activity signaling the end of a recession or economic downturn, typically characterized by a rise in GDP, employment, and consumer spending.

Great Depression

A global economic downturn of severe magnitude, primarily occurring in the 1930s, starting in the United States.