S1: Admission of a new partner by investment generally increases the total assets and capital of the new partnership unless there is a negative asset revaluation.

S2: Admission of a new partner by purchase of interest will never affect the total assets and capital of the new partnership.

Group of answer choices

a. S1 is true; S2 is false

b. S1 is false; S2 is true

c. Both statements are false

d. Both statements are true

If the capital credit for the new partner is less than his capital contribution with no adjustment in asset values, the admission resulted in a:

Group of answer choices

a. Bonus to old partners

b. Asset Revaluation

c. Bonus to new partner

d. No bonus

If a partnership is liquidated, how is the final allocation of business assets made to the partners?

Group of answer choices

a. According to their capital ratio

b. Equally

c. According to their profit or loss ratio.

d. According to their final capital account balances

If the total agreed capital exceeds the total contributed capital with the new partner's investment the same as his capital credit, then the admission of a new partner involved a:

Group of answer choices

a. Bonus to new partners

b. Bonus to old partners

c. Positive asset revaluation

d. Negative asset revaluation