Farrell and Jimmy Enter into a Partnership Agreement on May

question 44

Multiple Choice

Farrell and Jimmy enter into a partnership agreement on May 1,2018.Farrell contributes $50,000 and Jimmy contributes $150,000 as their capital contributions.They decide to share profits and losses in the ratio of their respective capital account balances.The net loss for the year ended December 31,2018 is $40,000.The capital account of Farrell should be ________ with his share of the loss.

• A) debited
• B) credited
• C) increased
• D) halved

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Definitions:

Location-Based Apps

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Foursquare

A local search-and-discovery service mobile app which provides search results for its users.

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A large group of insects or other small organisms moving together, or metaphorically, a group of individuals focusing intensely on a particular activity or goal.

Location-Based Service

A social, entertainment, or information service that allows a company to reach and engage with its audience using tools and platforms that capture the geographic location of the audience.