Fox,Greg,and Howe Are Partners with Average Capital Balances During 20X1

question 37

Multiple Choice

Fox,Greg,and Howe are partners with average capital balances during 20X1 of $120,000,$60,000,and $40,000,respectively.Partners receive 10% interest on their average capital balances.After deducting salaries of $30,000 to Fox and $20,000 to Howe,the residual profit or loss is divided equally.In 20X1 the partnership sustained a $33,000 loss before interest and salaries to partners.By what amount should Fox's capital account change?

• A) $7,000 increase
• B) $11,000 decrease
• C) $35,000 decrease
• D) $42,000 increase

---

Definitions:

Locus of Control

A person's belief about the extent to which their actions can influence events and outcomes in their lives, classified as either internal (self-driven) or external (driven by outside forces).

Blood Cholesterol

Blood cholesterol refers to the levels of cholesterol in the bloodstream, which include low-density lipoprotein (LDL, or "bad" cholesterol) and high-density lipoprotein (HDL, or "good" cholesterol), influencing heart health.

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, often measured as an indicator of heart health.

Lymphocytes

A type of white blood cell that is an essential component of the immune system, playing a crucial role in fighting infections.