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:

Empty Nest

A phase in parents' lives when their children have grown up and left home to pursue their own lives, often leading to feelings of loneliness or loss.

Unemployment

The condition of being without a job despite being willing and able to work, often measured as a percentage of the labor force.

Clinically Depressed

Refers to a person diagnosed with major depression, characterized by a persistent feeling of sadness or a lack of interest in external stimuli.

Less Stress

Experiencing lower levels of stress, which refers to a condition of strain on one’s emotions, mind, or physical body.