Asked by Jonnel Young on May 13, 2024
Verified
Total partners' equity of a partnership is equal to the sum of all partners' capital account balances.
Partners' Equity
The total amount of capital contributed by partners plus their accumulated profits retained in the business.
Capital Account Balances
The financial records that show the equity ownership and investment contributions of partners or shareholders in a business.
- Acquire knowledge on the determination of bonuses and cash distribution processes during the winding up of partnerships.
Verified Answer
GB
Gurjot BadyalMay 13, 2024
Final Answer :
True
Explanation :
This is true, as the capital account balances of all partners represent their ownership share of the partnership, and adding them together gives the total equity of the partnership.
Learning Objectives
- Acquire knowledge on the determination of bonuses and cash distribution processes during the winding up of partnerships.
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