Question 3

The statement of retained earnings must be prepared for:

A. General partnership

B. limited partnership

C. limited liability partnership

D. none of the above

Question 4

Which of the following would not be (True) in the event that a newly admitted partner pays more than book value for his/her investment in a partnership?

A. Assign a bonus to the prior partners

B. Record unrecognized goodwill and allocate it to the prior partner's

C. Record no revaluations, bonus, or goodwill

D. Revalue net assets up to market value and allocate to prior partners