Nee High and Low Jack Are Partners in an Accounting

question 81

Multiple Choice

Nee High and Low Jack are partners in an accounting firm and share net income and loss equally. High's beginning partnership capital balance for the current year is $285,000, and Jack's beginning partnership capital balance for the current year is $370,000. The partnership had net income of $250,000 for the year. High withdrew $90,000 during the year and Jack withdrew $100,000. What is High's return on equity?

• A) 41.3%
• B) 43.9%
• C) 32.7%
• D) 33.8%
• E) 36.5%

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Definitions:

Nonfinancial Performance

Measures of an organization's success not directly related to financial gains, such as customer satisfaction, employee engagement, and environmental impact.

GAAP or IFRS

Standards and principles that provide the framework for financial accounting and reporting, with GAAP used in the United States and IFRS internationally.

Objectivity and Verifiability

Accounting principles emphasizing the importance of unbiased financial information and the ability to confirm the accuracy of this data.

Just-In-Time (JIT)

A manufacturing strategy that aims to reduce inventory levels and increase efficiency by producing products only as they are needed.