Which of the Following Is TRUE When a New Partner

question 99

Multiple Choice

Which of the following is TRUE when a new partner is admitted to a partnership by purchasing an existing partner's interest?

• A) Only the transfer of cash from the new partner to the existing partner is recorded.
• B) Admission of the new partner affects the total asset amount.
• C) Admission of the new partner affects the total equity amount.
• D) The only journal entry the partnership records is the transfer of partner's capital.

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