Which of the Following Is TRUE When a New Partner

question 99

Multiple Choice

Which of the following is TRUE when a new partner is admitted to a partnership 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:

Rummaging

The act of searching unsystematically and untidily through a mass or receptacle to find something.

Statutory Grant

A sum of money legally given to an entity, typically from a government body, which is to be used for a specific purpose defined by statute.

Intellectual Property

Legal rights to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names, and images used in commerce.

Intellectual Work

Activities involving mental effort and creativity, such as research, analysis, and design, often producing intellectual property.