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.

---

Definitions:

Confidence Intervals

A gamut of values, developed from the statistics of a sampling, with a high chance of containing the value of an unknown population parameter.

Interval Center

Refers to the midpoint of an interval, representing the average of its upper and lower bounds.

Confidence Interval

A range of values, derived from the sample data, that is used to estimate the true value of a population parameter with a specified level of confidence.

Variance

A statistical measure that represents the degree of spread in a dataset or the variability of the observations from the average.