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Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

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FindFindarrow_forward

Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 15, Problem 2MC
Textbook Problem
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Any assets invested by a particular partner in a partnership ________.

A. do not become a partnership asset but instead remain with the partner

B. can be used only by the investing partner

C. become the property of all the partners

D. are the basis for all profit sharing

To determine

Concept introduction:

Partnership:

A partnership is a form of business origination under which two or more persons come together with an agreement to do the business. The concept of mutual agency is applied to the partnership, under which all partners are bound to each other’s work.

Contribution by a partner in the partnership firm:

A partner may contribute cash or non cash assets into the partnership firm. In order to record the partner’s contribution, the contributed assets are debited, and partner’s capital account is credited with the total amount of the contribution made by the partner.

To choose:

The correct option.

Explanation of Solution

Explanation for correct answer:

If a partner invests any asset in the partnership, it gives right to all the partners to use it for the partnership business. Hence, the correct option is C.

Explanation for incorrect answers:

A. If a partner invests any asset in the partnership, it gives right to all the partners to use it for the partnership business...

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Chapter 15 Solutions

Principles of Accounting Volume 1
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Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - Thandie and Marco are partners with capital...Ch. 15 - When a partnership dissolves, the first step in...Ch. 15 - When a partnership dissolves, the last step in the...Ch. 15 - Prior to proceeding with the liquidation, the...Ch. 15 - Does a partnership pay income tax?Ch. 15 - Can a partners personal assets in a limited...Ch. 15 - Can a partnership assume liabilities as part of...Ch. 15 - Does each partner have to contribute an equal...Ch. 15 - What types of bases for dividing partnership net...Ch. 15 - Angela and Agatha are partners in Double A...Ch. 15 - On February 3, 2016 Sam Singh invested $90,000...Ch. 15 - Why do partnerships dissolve?Ch. 15 - What are the four steps involved in liquidating a...Ch. 15 - When a partner withdraws from the firm, which...Ch. 15 - What is the first step in a partnership...Ch. 15 - When a partnership liquidates, do partners get...Ch. 15 - Coffee Partners decides to close due to the...Ch. 15 - On May 1, 2017, BJ and Paige formed a partnership....Ch. 15 - The partnership of Chase and Chloe shares profits...Ch. 15 - The partnership of Tasha and Bill shares profits...Ch. 15 - Cheese Partners has decided to close the store. At...Ch. 15 - The partnership of Michelle, Amal, and Maureen has...Ch. 15 - The partnership of Tatum and Brook shares profits...Ch. 15 - Arun and Margot want to admit Tammy as a third...Ch. 15 - When a partnership is liquidated, any gains or...Ch. 15 - The partnership of Magda and Sue shares profits...Ch. 15 - The partnership of Arun, Margot, and Tammy has...Ch. 15 - Match each of the following descriptions with the...Ch. 15 - While sole proprietorships and corporations are...Ch. 15 - A partnership is thriving. The three partners get...

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