What Was the Total Capital Balance for the Partnership at December

question 61

Multiple Choice

What was the total capital balance for the partnership at December 31, 2018?

• A) $852,000.
• B) $780,000.
• C) $708,000.
• D) $744,000.
• E) $594,000.

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Definitions:

Net Income

The total profit or loss of a company after all expenses, taxes, and costs have been subtracted from total revenues.

Expenses Overstated

A situation where the recorded amount of expenses is higher than the actual amount incurred, causing an understatement of net income.

Adjusting Journal Entry

a bookkeeping entry made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Net Income

The remaining income of a company once all taxes and costs are deducted from its total revenue.