Issac and Karl Are Partners

question 144

Multiple Choice

Issac and Karl are partners.Issac has a capital balance of $25,000 and Karl has a capital balance of $20,000.Bill invested $15,000 to acquire an ownership interest of 30%.How does this transaction affect the balance sheet items?

• A) Asset increases and the equity remains unchanged.
• B) Assets increase and the equity decreases.
• C) Both assets and equity increase.
• D) Assets increase, liabilities decrease, and the equity remain unchanged.

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Definitions:

Sourcing Strategy

The approach an organization takes to manage procurement processes and supplier relationships to optimize cost, quality, and supply reliability.

Supplier Selection Criteria

The standards or benchmarks that companies use to evaluate and choose among potential suppliers.

TQM

Total Quality Management; a management approach to long-term success through customer satisfaction, focusing on continuous improvement of organizational processes.

ISO 9000

A set of international standards for quality management and quality assurance designed to help companies ensure they meet customer and other stakeholder needs.