When a New Partner Is Admitted into a Partnership and the Old

question 20

Multiple Choice

When a new partner is admitted into a partnership and the old partners' goodwill is recognized,the goodwill is allocated to:
I.all the partners in their profit-and-loss-sharing ratio.
II.the old partners in their profit and loss sharing ratio.

• A)I only
• B)II only
• C)Either I or II
• D)Neither I nor II

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Definitions:

Data Integrity Policies

Guidelines and practices aimed at ensuring the accuracy, completeness, and reliability of data throughout its lifecycle.

Profitability

A measure of the efficiency and financial success of a business, indicated by the net income over a specific period relative to its revenues.

Organizational Operating Surplus

The excess of revenues over operating expenses within an organization, indicating financial health and efficiency.

Accounting

the systematic process of recording, analyzing, and reporting financial transactions for a business or individual.