The Following Account Balances Were Available for the Perry, Quincy

question 37

Multiple Choice

The following account balances were available for the Perry, Quincy, and Renquist partnership just before it entered liquidation:

Included in Perry's capital balance is a $20,000 partnership loan owed to Perry. Perry, Quincy, and Renquist shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be $15,000.
All partners were solvent.
What amount would noncash assets need to be sold for in order for any partner to receive some cash?

• A) $185,000
• B) $170,000
• C) $165,000
• D) $95,000
• E) $90,000

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Definitions:

Situationist

Pertaining to the theory that environmental and situational contexts significantly influence behavior, as opposed to traits being solely responsible.

Correlation

A statistical measure that indicates the extent to which two variables fluctuate together, without implying causation.

Effect Size

A quantitative measure of the magnitude of a phenomenon, effect, or difference, used to understand the significance of research outcomes.