Shannon has just become a partner in A & R Accounting Partnership. Her capital contribution is $10,000, which she paid from her savings. Which of the following is correct with respect to Shannon's liability for partnership obligations?
A) Shannon has unlimited personal liability for all partnership obligations that occur after she became a partner; she has liability to the extent of her capital contribution for obligations that existed at the time she became a partner.
B) Shannon has unlimited personal liability for all partnership debts regardless of whether they were incurred before or after she became a partner.
C) Shannon has no liability for partnership debts that existed at the time of her admission as a partner.
D) Shannon is liable only to the extent of her capital contribution for partnership debts that occur after her admission as a partner.
A
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A firm purchased an office machine for $18,400, estimated that it will use the machine for 15 years, and estimated a salvage value of $400 . On December 31 of the sixth year, before closing the books for the year, the firm analyzed its estimates of useful life and salvage value. In light of new information, the firm estimated that the machine will have a total useful life of only 10 years, and
the salvage estimate of $400 remains reasonable. The new estimate of the remaining life is five years (the year just ended plus the next four). The depreciation entry on December 31 of the sixth year and each year thereafter is: a. Depreciation Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200 Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,200 b. Depreciation Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400 Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,400 c. Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,200 Depreciation Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200 d. Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,400 Depreciation Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400 e. none of the above
A budget contingency of $1 million on a $10 million project means that the project will be planned for a cost of $10 million, but the project organization receives an extra $1 million to guard against unforeseen cost overruns
Indicate whether the statement is true or false
An accounting information system should be designed to provide information that is useful. To be useful the information must be:
A. marginal between two alternatives. B. historical in nature and not purport to predict the future. C. qualitative rather than quantitative. D. unique and unavailable through other sources. E. relevant, accurate, and timely.
Cooley Manufacturing is a multinational company selling plumbing components around the world. This company has progressed to the point that it operates an entire of line of business in several other countries. Which stage of multinational business does this represent?
A. Stage one B. Stage two C. Stage three D. Stage four E. Stage five