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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Definitions:

Middle Ground

A borderland between European empires and Indian sovereignty where various native peoples and Europeans lived side by side in relative harmony.

European Traders

European Traders refers to merchants and companies from Europe engaged in commercial trade activities with other regions, historically significant in the spread of colonization, goods, and cultural exchanges.

Deists

People who believe in a rational yet detached God, who does not intervene in the universe or human affairs.