Cherryhill and Hace Had Been Partners for Several Years, and They

question 23

Multiple Choice

Cherryhill and Hace had been partners for several years, and they decided to admit Quincy to the partnership.The accountant for the partnership believed that the dissolved partnership and the newly formed partnership were two separate entities.What method would the accountant have used for recording the admission of Quincy to the partnership?

• A) The bonus method.
• B) The equity method.
• C) The goodwill method.
• D) The proportionate method.
• E) The cost method.

---

Definitions:

Culture

The accumulated habits, beliefs, values, and knowledge that characterize a group of people or society, shaping their worldview and practices.

Pattern of Beliefs

A consistent and typical set of convictions or opinions that shape an individual’s or group's worldview and actions.

Automatically Transmitted

Pertains to the process where data or information is sent and received without the need for manual intervention.

Diversity Competency

The ability to understand, respect, and value the differences among individuals, fostering an inclusive work environment.