Multiple Choice
Which of the following is TRUE when a new partner is admitted to a partnership by purchasing an existing partner's interest?
A) Only the transfer of cash from the new partner to the existing partner is recorded.
B) Admission of the new partner affects the total asset amount.
C) Admission of the new partner affects the total equity amount.
D) The only journal entry the partnership records is the transfer of partner's capital.
Correct Answer:
Verified
Correct Answer:
Verified
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