When an Additional Partner Is Admitted to a Partnership by Contribution

question 89

Multiple Choice

When an additional partner is admitted to a partnership by contribution of assets to the partnership,

• A) the total assets of the partnership do not change
• B) no liabilities can be contributed at the same time
• C) the amount of the cash contribution is the same as the amount of the debit to the new partner's capital account
• D) the total of the owners' equity accounts increases

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Definitions:

Legal Equality

The principle that all individuals are entitled to the same legal rights and obligations, regardless of personal characteristics or status.

Social Equality

The condition in which all individuals within a society have the same status in certain respects, including civil rights, freedom of speech, property rights, and equal access to social goods and services.

Liberal Feminism

A branch of feminism that emphasizes individuals' equality and seeks to achieve gender equality through political and legal reform within the current societal structure.

Experimentation

The act of trying out new ideas, methods, or activities to discover something unknown or to test a theory.