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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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.
Transcribed Image Text: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.
Transcribed Image Text: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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