Tim and Michelle Have Decided to Form a Partnership

question 106

Multiple Choice

Tim and Michelle have decided to form a partnership. Tim contributes $8,000 cash and $2,000 in merchandise inventory. While journalizing this transaction:

• A)Tim, Capital will be debited for $10,000.
• B)Tim, Capital will be credited for $10,000.
• C)Tim, Capital will be credited for $6,000 and Michelle, Capital will be credited for $4,000.
• D)Tim, Capital will be debited for $6,000 and Michelle, Capital will be debited for $4,000.

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Definitions:

Normative Influences

Social pressures to conform to the expectations or norms of a group of people.

Karma

A concept in Hinduism, Buddhism, and Jainism which refers to the cycle of cause and effect where an individual's actions, whether good or bad, influence their future.

Social Cynicism

A generalized negative attitude towards people and society, often characterized by a belief in the selfishness and deceitfulness of others.

Social Flexibility

The ability to adapt one's behavior and attitudes to different social situations or to changes in the social environment.