Harry, Tony, and Liza Run a Partnership Firm

question 14

Multiple Choice

Harry, Tony, and Liza run a partnership firm. In the process of liquidation, the partnership sells non-cash assets, having a book value of $75,000, for $90,000. Which of the following is true of the journal entries?

• A)Cash will be credited by $15,000.
• B)Non-cash assets will be credited for $90,000.
• C)Cash will be credited for $75,000.
• D)Non-cash assets will be credited for $75,000.

Understand the distinct objectives of various standardized tests.

Identify the correct test content area for a given test.

Distinguish between the GREs, SATs, and Woodcock-Johnson III tests in terms of their primary focus.

Recognize the terminology used in categorizing standardized tests.

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Definitions:

Dividends receivable

Dividends declared and owed to a shareholder but not yet paid.

Dividend Income

Income received from owning shares in a company, typically distributed from the company's profits.

Common Stock

Shares representing ownership in a company, providing voting rights and potential dividends, but with a lower claim on assets than preferred shares.

Short-term Speculation

Engaging in financial transactions with the expectation of achieving significant gains within a short time frame, often involving high risk.