Allan and Ralph Are Partners

question 111

Multiple Choice

Allan and Ralph are partners.Allan has a capital balance of $92,000 and Ralph has a capital balance of $75,000.Carol invested $60,000 to acquire an ownership interest of $50,000.Which of the following is TRUE of the impact of the transaction on the balance sheet?

• A) Asset increases and the equity will remain unchanged.
• B) Both assets and equity will increase.
• C) Assets will increase and equity will decrease.
• D) Assets will decrease and the equity will remain unchanged.

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Definitions:

Person-Organization Fit

The compatibility between an individual's values, skills, and personality and the culture, values, and requirements of an organization, which can influence job satisfaction and performance.

Clinical Approach

A method that applies psychological principles and techniques for assessing and treating individuals' mental health and behavioral issues.

Statistical Approach

A method involving the analysis of data through statistical techniques to inform decisions or understand patterns.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, typically to solve a problem or achieve a goal.