Reference no: EM132934147

Problem 1: What is the first adjustment that need to be prepared in case of admission of a partner?

Option 1: Profit and loss account adjustment

Option 2: The revaluation of assets

Option 3: Realization of income or loss

Option 4: Bank account

Problem 2: Statement 1: If the total contributed capital of the partnership is greater than the total agreed capital, it is possible that a goodwill be recognized or an undervaluation of asset occurred. Statement 2: Noncash assets sold by the partnership will prioritize payment of creditors.

Option 1: S1 True; S2 False

Option 2: S2 True; S1 False

Option 3: Both statements are false

Option 4: Both statements are true