After closing the temporary owners' equity accounts into Income Summary, and after allocating the net income and closing the partners' drawing accounts, assume the partners' capital accounts had credit balances as follows: Yang, $20,000; Wolfe, $30,000; Stamatis, $45,000 . Partners share profits and losses as follows: Yang, 20%; Wolfe, 30%; and Stamatis, 50%. If Yang purchased Stamatis's interest
in the partnership for $40,000 cash, the amount entered in Yang's capital account is a
a. $5,000 debit.
b. $40,000 debit.
c. $40,000 credit.
d. $45,000 credit.
d
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Toyota learned many things from its partnership with GM, however American managers involved in the venture complained that:
A) Toyota learned many things about the U.S. supply system. B) Toyota learned about the U.S. transport system. C) Toyota learned about managing American workers. D) Toyota did not apply manufacturing expertise at GM plant. E) Toyota applied its expertise at its Camry plant.
Authorization of purchases in a merchandising firm occurs in the inventory control department
Indicate whether the statement is true or false
A drawback of short-term contracting as an alternative to making a component in-house is that
A. it fails to allow a long planning period that individual market transactions provide. B. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. C. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. D. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.
Which of the following is NOT a common bondholder covenant?
A) Dividends cannot be paid unless there is sufficient cash to cover the next coupon payment. B) Dividends may be prohibited above a certain percentage of current earnings. C) If the firm has insufficient cash to cover required coupon payments, shareholders will pay interest directly from their own accounts on a pro rata basis. D) All of the above are common bondholder covenants.