Direction: Write your brief explanation in the space provided for the give.n case below: Mary Rose and Mary Joy are partners in logistics delivery business. Mary Rose, the managing partner, purchased equipment to be used in the entity's operation. Is this purchase binding on Mary Joy even though she was not involved in the transaction? Explain.

Direction: Write your brief explanation in the space provided for the give.n case below: Mary Rose and Mary Joy are partners in logistics delivery business. Mary Rose, the managing partner, purchased equipment to be used in the entity's operation. Is this purchase binding on Mary Joy even though she was not involved in the transaction? Explain.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Direction: Use the table below to summarize the rules for the distribution of profits or losses.
Distribution of Profits
Distribution of Losses
With agreement
Without
1.
1.
agreement
2.
3.
2.

Direction: Write your brief explanation in the space provided for the given case below:
Mary Rose and Mary Joy are partners in logistics delivery business. Mary Rose, the managing partner,
purchased equipment to be used in the entity's operation. Is this purchase binding on Mary Joy even
though she was not involved in the transaction? Explain.

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