When an incoming partner purchases his share from any one of the existing partners, then:
A. total assets of the firm do not change
B. total assets of the firm will be augmented to the extent of payment received from the new partner
C. total assets of the firm will be reduced to the extent of payment received from the new partner
D. change in total assets of the firm will depend upon the new profit sharing ratio of the partners
Answer: Option A
This Question Belongs to Commerce >> Accounting
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
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