Which of the following would not be recorded in the entry for the formation of a partnership?
A) Accumulated depreciation
B) Allowance for doubtful accounts
C) Accounts receivable
D) All of these would be recorded.

Question

Quizplus · Accepted Answer

Accumulated depreciation is a contra asset account that reflects the amount of depreciation that has been recorded on an asset over time. It is not relevant to the formation of a partnership and would not be included in the initial entry. Allowance for doubtful accounts and accounts receivable, on the other hand, represent assets and liabilities that a partnership would likely have and would be recorded in the entry.

Which of the Following Would Not Be Recorded in the Entry