Allan and Ralph Are Partners

question 142

Multiple Choice

Allan and Ralph are partners.Allan has a capital balance of $92,000 and Ralph has a capital balance of $75,000.Carol invested $60,000 to acquire an ownership interest of $50,000.Which of the following is true of the impact of the transaction on the balance sheet?

• A)Asset increases and the equity will remain unchanged.
• B)Both assets and equity will increase.
• C)Assets will increase and equity will decrease.
• D)Assets will increase and the equity will remain unchanged.

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Definitions:

Labor Supply

The total hours that workers wish to work at a given wage rate, representing the availability of labor for production.

Equilibrium Wage

The salary level where the amount of work sought by employers matches the amount of work offered by employees.

Wage Discrimination

The practice of paying different wages to employees who do similar work based on the employees' gender, race, age, or other non-merit-based factors.

Objective Measures

Assessments based on observable and measurable facts, used in various fields to ensure fairness and accuracy in decision-making.