. When the investment of a new partner is below the new partners' capital balance and goodwill is not recorded, who will receive the bonus: a.The new partner. b.The old partners in their old profit and loss ratio. c.The old partners in their new profit and loss ratio. d.The old and new partners in their new profit and loss ratio
1. When the investment of a new partner is below the new partners' capital balance and
a.The new partner.
b.The old partners in their old
c.The old partners in their new profit and loss ratio.
d.The old and new partners in their new profit and loss ratio
2.S1: Admission of a new partner by investment generally increases the total assets and capital of the new partnership unless there is a negative asset revaluation.
S2: Admission of a new partner by the purchase of interest will never affect the total assets and capital of the new partnership
a. S1 is false, S2 is true
b. Both statements are true
c. Both statements are false
d. S1 is true, S2 is false
3. S1: In lumpsum liquidation, the remaining cash available after realization and payment of liquidation expenses, will always be equal to the total interest of the partners.
S2: In installment liquidation, the partner who has the highest absorption capacity shall be prioritized in the payment of interest.
a. S1 is false, S2 is true
b. Both statements are true
c. Both statements are false
d. S1 is true, S2 is false
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