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23. Part III - Open Answer (Terms Bank provided below) (2 Points Each). 21. When the current value of a partnership is greater than the

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23. Part III - Open Answer (Terms Bank provided below) (2 Points Each). 21. When the current value of a partnership is greater than the recorded amounts of equity, the old partners usually require a new partner to pay a when joining 22. Significant influence is generally assumed with 20% to 50% ownership in a Company's Equity, an as a result the Method must be used to account for the investment. _ is the amount of net income left over for the business after it has paid out dividends to its shareholders. Often this profit is paid out to shareholders, but it can also be re-invested back into the company for growth purposes. The money not paid to shareholders counts as retained earnings. 24. A discount on bonds payable occurs when a company issues bonds with a contract rate than the market rate. 25. A means that at least one partner has a debit balance in his or her capital account at the point of final cash distribution. Terms Bank: Long-Term Cash Equivalents Short-Term Par Value Stated Value Stock Dividend Bonus Capital deficiency Gain Greater Straight-line Effective Interest Cash Controlling Influence Equity Available for Sale Trading Securities Cash Dividend Less Loss Retained earnings Installment Note Term Note Accounts Payable Pensions

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