Hillary, Bruce, and Cindy Own a Partnership Firm

question 2

Multiple Choice

Hillary, Bruce, and Cindy own a partnership firm. Hillary has an ownership of $25,000; Bruce has an ownership of $40,000; and Cindy has an ownership of $31,000. In the process of liquidation, the partnership sells non-cash assets and registers a gain of $30,000. The profit-loss sharing agreement is 1/6 to Hillary; 2/6 to Bruce; and 3/6 to Cindy. Which of the following is true when a journal entry for the allocation of gain is recorded?

• A)Hillary, Capital is credited for $10,000.
• B)Cindy, Capital is credited for $15,000.
• C)Hillary, Capital is debited for $10,000.
• D)Cindy, Capital is credited for $10,000.

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Definitions:

Try/Catch Block

A try/catch block in programming languages like Java is used to handle exceptions, allowing the program to continue running even after encountering an error.

Multiple Exceptions

A scenario in programming where more than one exception could be thrown, requiring careful handling and catch blocks for each possible exception.

Finally Block

A block in Java that follows try and catch blocks, and is executed regardless of whether an exception is caught.

Error

A problem or discrepancy that prevents a program or system from functioning correctly.