Asked by Annette Herrera on Jun 03, 2024
Verified
When a new partner is admitted to a partnership, all partnership assets should be revised to reflect current values.
Partnership Assets
Assets that are owned by a partnership and used in the operation of the business.
Current Values
The present market value of an asset or financial instrument, which can fluctuate over time based on market conditions.
- Apprehend the implications on accounting and finance due to changes in partnership structure.
Verified Answer
SD
Serigne Dame GUEYEJun 06, 2024
Final Answer :
True
Explanation :
When a new partner is admitted to a partnership, the partnership agreement should be revised and all partnership assets should be revalued to reflect their current values. This can help ensure an accurate determination of each partner's ownership percentage and prevent misunderstandings or disputes in the future.
Learning Objectives
- Apprehend the implications on accounting and finance due to changes in partnership structure.
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