Gary,Peter,and Chris Own a Firm as Partners

question 149

Multiple Choice

Gary,Peter,and Chris own a firm as partners.Gary has a capital balance of $22,000; Peter a capital balance of $42,000; and Chris has a capital balance of $32,000.As per the partnership agreement,Gary gets a profit share of 2/9; Peter has 4/9; and Chris has 3/9.Which of the following is TRUE,if Gary withdraws from the partnership by receiving $22,000?

• A) Peter, Capital and Chris, Capital will be credited for $11,000 each.
• B) Gary, Capital will be debited for $22,000.
• C) Cash is debited for $22,000.
• D) Peter, Capital will be credited for $22,000.

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Definitions:

Labor Unions

Organizations formed by workers to advocate for their rights, better wages, benefits, and working conditions through collective bargaining with employers.

Racially Homogenous

Describes a population, group, or area predominantly composed of individuals from a single racial or ethnic background.

Civil Rights Movement

A social and political campaign in the United States during the 1950s and 1960s, aimed at ending racial discrimination and gaining equal rights for African Americans.

Ethnic Chauvinism

An exaggerated or aggressive form of patriotism and pride in one's ethnic group, often accompanied by feelings of superiority over other groups.