Which of the following statements is correct regarding partnerships?
A) Accounting for a partnership is similar to accounting for a corporation.
B) If the partnership assumes a liability related to an asset invested in the partnership, the partner's capital account is credited and a liability account is debited.
C) It is necessary to maintain separate Capital and Withdrawals accounts for each partner.
D) All of these choices.
C
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Open peril coverage for both the dwelling and personal property is provided by the
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Congratulations you have just won the tuition lottery! The lottery pays out four beginning-of-the-year cash flows of $50,000 each with the first cash flow today and the remaining cash flows to follow at the start of years 2, 3, and 4
Since the lottery is managed by the Fergetaboutit University system you are considering their offer of a lump sum of $160,000 today. If after considering all of he relevant economic factors, you conclude it is reasonable to use a 12% interest rate to compare these two offers. Which offer should you take and why? A) Take the lump sum because the annuity PV is only $151,867.47. B) Take the annuity because the PV of $170,091.56 is greater than the lump sum. C) Take the annuity because the PV of $238,966.40 is greater than the lump sum. D) Take the lump sum because the annuity PV is only $135,595.95.