Cherryhill and Hace Had Been Partners for Several Years, and They

question 16

Multiple Choice

Cherryhill and Hace had been partners for several years, and they decided to admit Quincy to the partnership. The accountant for the partnership believed that the dissolved partnership and the newly formed partnership were two separate entities. What method would the accountant have used for recording the admission of Quincy to the partnership?

• A) the bonus method.
• B) the equity method.
• C) the goodwill method.
• D) the proportionate method.
• E) the cost method.

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Definitions:

Memory Capacity

The amount of information that can be held in the memory system at one time, varying across different types and stages of memory.

Sensorimotor Stage

A Piagetian stage of infancy marked by the absence of the capacity for mental representation.

Mental Representation

An internal depiction of information.

Object Concept

The mental representation and understanding of objects, including their properties and how they relate to other objects.