Sally Smythe Enters into a Partnership by Contributing the Following

question 8

Multiple Choice

Sally Smythe enters into a partnership by contributing the following: Cash $15,000;Accounts Receivable $4,500;Machinery which cost $3,000 and has a fair market value of $2,125;and accounts payable of $1,200.What amount will be recorded in her capital account?

• A)$21,625
• B)$20,425
• C)$22,500
• D)$21,300

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Definitions:

Collective Bargaining

The process of negotiating, administering, and interpreting a labour contract.

Acculturation

The process of adopting the cultural traits or social patterns of another group, often as a result of prolonged contact.

Mediation

A form of conflict resolution where a neutral third party assists the disputing parties in reaching a consensus or settlement.

Nepotism

Favoritism granted to relatives or friends, especially in a work context, where they are given preferential treatment or opportunities.