Which of the Following Is True When a New Partner

question 24

Multiple Choice

Which of the following is true when a new partner is admitted 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:

Customer Structure

The composition and organization of a business's clientele, including types of customers and their relationship to the business.

Geographical Structure

An organizational structure that groups employees or departments based on geographic regions or locations.

Product Structure

An organizational design that arranges departments and teams based on specific products or product lines, enabling focused management and development efforts.

Functional Structure

An organizational layout that groups together employees who are performing similar tasks or functions, such as marketing or finance, facilitating specialization.