When a New Partner Is Admitted to a Partnership, There

question 179

Multiple Choice

When a new partner is admitted to a partnership, there should be a (n)

• A) increase in the total assets of the partnership
• B) new capital account added to the ledger for the new partner
• C) increase in the total owners' equity of the partnership
• D) debit amount to the partner's capital account for the cash received by the current partner

Interpret the basic principles of the price system and signal mechanisms in a market economy.

Demonstrate the ability to analyze market conditions and predict changes in equilibrium price and quantity.

Understand how to journalize stock issuance transactions, including preferred and common stock.

Identify and understand the components of the stockholders' equity section of the balance sheet.