A partnership records the partners' contributions at their ________.
A) current market value
B) historical value
C) net realizable value
D) average value

Question

Quizplus · Accepted Answer

Partnerships record their partners' contributions at their current market value, which is the amount that the asset or liability would sell for in the market at the time of contribution. This provides a more accurate picture of the partners' equity in the partnership than using historical values or average values. Net realizable value may be used for certain types of assets, such as accounts receivable, but is not generally used for recording contributions.

A Partnership Records the Partners' Contributions at Their ________