As Part of the Initial Investment, Omar Contributes Accounts Receivable

question 119

Multiple Choice

As part of the initial investment, Omar contributes accounts receivable that had a balance of $22,500 in the accounts of a sole proprietorship. Of this amount, $2,000 is completely worthless. For the remaining accounts, the partnership will establish a provision for possible future uncollectible accounts of $1,500. The amount debited to Accounts Receivable for the new partnership is

• A) $19,000
• B) $22,500
• C) $21,000
• D) $20,500

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Definitions:

Performance-Outcome Contingencies

The relationship between the performance of specific actions and the resulting outcomes, emphasizing the role of rewards or consequences.

Expectancies

Beliefs about the likelihood of a particular outcome as a result of one's actions or behaviors.

Process Theories of Motivation

Theories that focus on the psychological and behavioral processes influencing individuals’ motivation, including how they make decisions about their behavior in relation to their goals.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to act in certain ways based on the expectation that their actions will lead to desired outcomes.