Tomas and Saturn Are Partners Who Share Income in the Ratio

question 185

Multiple Choice

Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital balances are $40,000 and $60,000, respectively. The partnership generated net income of $20,000. What is Saturn's capital balance after closing the revenue and expense accounts to the capital accounts?

• A) $55,000
• B) $75,000
• C) $45,000
• D) $65,000

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Definitions:

Owners

Individuals or entities that have legal ownership and rights over property, assets, or businesses.

Categorical Imperative

A concept developed by the philosopher Immanuel Kant as an ethical guideline for behavior. In deciding whether an action is right or wrong, or desirable or undesirable, a person should evaluate the action in terms of what would happen if everybody else in the same situation, or category, acted the same way.

Unethical Decision

A choice or judgment that goes against moral principles or professional standards, often resulting in harm or unfairness.

Society

Society is a group of individuals living together in a more or less ordered community, often sharing common traditions, institutions, and values.