There Are Two Methods of Accounting for Equity in a Partnership

question 29

Multiple Choice

There are two methods of accounting for equity in a partnership referred to in the text, method 1 and method 2; these are:

• A) variable and fixed capital balances methods.
• B) equal and unequal profit sharing methods.
• C) interest and no interest methods.
• D) debit and credit methods.

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Definitions:

Autonomy Support

A management or teaching style that nurtures self-initiation and emphasizes the importance of personal choice, freedom, and volition in carrying out tasks.

Personal Initiative

An individual's action that is anticipatory, self-starting, and persistent in overcoming barriers and implementing change or innovation.

Need Theories

Psychological theories that identify and categorize human needs driving behavior, often focusing on how these needs influence work motivation and management.

Process Theories

Motivation theories that specify the details of how motivation occurs.