Shaun and Rick Are Partners

question 122

Multiple Choice

Shaun and Rick are partners.Shaun has a capital balance of $12,000 and Rick has a capital balance of $10,000.Edwin contributes a building with a current market value of $8000 to acquire an interest in the new partnership.Which of the following is TRUE of the effect of the transaction on the balance sheet? (Assume no bonus to any partner.)

• A) Both assets and equity will increase by $8000.
• B) Both assets and liabilities will decrease by $8000.
• C) Both assets and equity will decrease by $8000.
• D) Both assets and liabilities will increase by $8000.

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Definitions:

Self-reward

A process of giving oneself a reward to reinforce and encourage positive behavior or the completion of tasks.

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Consistent practices or routines that individuals adopt to enhance their learning and understanding of materials, improving their educational outcomes.

Functionalism

A school of thought in psychology that emphasizes the role of mental processes in how individuals adapt to their environment.

Behaviour Purpose

The underlying objective or reason for an individual's actions or behavior.