A Partnership Admits a New Partner

question 57

Multiple Choice

A partnership admits a new partner.The new partner invests $50,000 in the business and receives a credit of $60,000 to his capital account.The difference of $10,000 is called a(n) :

• A)admission fee.
• B)partnership expense.
• C)bonus.
• D)illegal activity.

Describe the applications and implications of fungal biodiversity and systematics in understanding historical environmental changes.

Understand the relationships between fungi and plant health, including pathogenic, mutualistic, and decomposing interactions.

Understand the fractions of crude oil refinement and their uses.

Comprehend the principles of gas chromatography and its application in forensic science.

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Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

Fabrication Department

A specialized sector within a manufacturing facility focused on constructing components or products by cutting, shaping, assembling, and finishing raw materials.

Equivalent Units

A concept in cost accounting used to express the amount of work done by manufacturers in terms of fully completed units of output.

Conversion Cost

The sum of direct labor and manufacturing overhead costs, representing the expenses necessary to convert raw materials into finished goods.