Erin, Jayne, and Kathryn form a general partnership. Kathryn, while on partnership business, accidentally caused a fire that burned down Bill's house. Bill successfully sued the partnership and each of the partners and received a judgment for $500,000. Bill decided seek payment on the judgment just from Erin and Jayne, since they were known to be independently wealthy. Erin and Jayne ________.
A. must divide the payment 50-50
B. can seek an injunction to prevent collection of the judgment since they were not involved in the tortious act
C. may seek indemnification from the Kathryn, the partner who committed the tortious act.
D. can avoid paying by dissolving the partnership immediately
Answer: C
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Chad invests $20,000 for a one-third interest in a partnership in which the other partners have capital totaling $52,000 before admitting Chad. After distribution of the bonus, what is Chad's capital?
A) $10,666 B) $17,334 C) $20,000 D) $24,000
When the seller has received cash, but has not earned all of the revenues represented by the cash by providing goods and services, the seller has incurred an obligation to provide goods or services. These liabilities
a. are referred to as deferred performance obligations. b. may use an account title of Advances from Customers. c. may use an account title of Deferred Revenues. d. may use an account title of Unearned Revenues. e. can be all of the above.
To prepare the Statement of Cash Flows, select:
A. Reports Center > Accountant & Taxes B. Company Center > Accountant & Taxes C. Reports Center > Company & Financials D. Company Center > Company & Financials
Using the probability approach, we assume that the demand over a period of time is normally distributed.
Answer the following statement true (T) or false (F)