Issac and Karl Are Partners

question 144

Multiple Choice

Issac and Karl are partners.Issac has a capital balance of $25,000 and Karl has a capital balance of $20,000.Bill invested $15,000 to acquire an ownership interest of 30%.How does this transaction affect the balance sheet items?

• A) Asset increases and the equity remains unchanged.
• B) Assets increase and the equity decreases.
• C) Both assets and equity increase.
• D) Assets increase, liabilities decrease, and the equity remain unchanged.

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Definitions:

Central

Being at the most important or core position; of primary importance or relevance.

Sensory

Pertaining to the senses or sensation.

Afferent Nerves

Nerves that carry sensory signals from the body's periphery towards the central nervous system, including the brain and spinal cord.

Efferent Nerves

Nerves that carry signals away from the central nervous system to effectors such as muscles and glands.