When an Existing Partner Sells His Interest to Another Party

question 134

Multiple Choice

When an existing partner sells his interest to another party in a personal transaction:

• A)it is considered a transaction between the partnership and the new party.
• B)the old partnership will continue functioning, since the partner is replaced by another party without diluting the old partnership.
• C)the journal entry simply debits the withdrawing partner's capital account and credits the new partner's capital.
• D)the equity and assets in the balance sheet increase by the same amount.

Understand the concept and reasons behind the downward slope of the aggregate demand curve.

Identify and distinguish between final goods and intermediate goods.

Understand the calculation and interpretation of GDP, including what is excluded or included in its calculation.

Recognize the impact of various activities and expenditures on GDP.

---

Definitions:

Corresponding P-Value

The probability of obtaining a test statistic at least as extreme as the one that was actually observed, assuming that the null hypothesis is true.

Null Hypothesis

A hypothesis that suggests there is no statistical significance between the two variables being studied or no effect of a treatment.

Plus Four Estimate

A technique in estimating a binomial proportion and its confidence interval by adding four observations, two of which are successes and two are failures.

Population Proportion

The fraction or percentage of a population that exhibits a specific attribute or characteristic.