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Which of the following statements is correct? O A. All partnerships are restricted to only two partners. O B. Capital contributed by each partner may be in the form of cash or even equipment such as computers and vehicles. OC. A credit balance in a partner's current account arises when the partner withdraws more than he/she is entitled to. O D. The capital contributions of the partners are recorded in a single capital account.

Which of the following statements is correct? O A. All partnerships are restricted to only two partners. O B. Capital contributed by each partner may be in the form of cash or even equipment such as computers and vehicles. OC. A credit balance in a partner's current account arises when the partner withdraws more than he/she is entitled to. O D. The capital contributions of the partners are recorded in a single capital account.

FINANCIAL ACCOUNTING
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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Which of the following statements is correct? OA. All partnerships are restricted to only two partners. O B. Capital contributed by each partner may be in the form of cash or even equipment such as computers and vehicles. OC. A credit balance in a partner's current account arises when the partner withdraws more than he/she is entitled to. D. The capital contributions of the partners are recorded in a single capital account.
Transcribed Image Text:Which of the following statements is correct? OA. All partnerships are restricted to only two partners. O B. Capital contributed by each partner may be in the form of cash or even equipment such as computers and vehicles. OC. A credit balance in a partner's current account arises when the partner withdraws more than he/she is entitled to. D. The capital contributions of the partners are recorded in a single capital account.
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