When a Partner Withdraws from a Partnership, the Partnership Can

question 103

Multiple Choice

When a partner withdraws from a partnership, the partnership can:

• A) audit the accounting records and adjust assets to fair market value.
• B) credit the account of the partner that withdrew and debit Cash.
• C) share any loss or profit from the historical value of assets.
• D) None of the above answers is correct.

---

Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded by the end of the accounting period.

Adjusting Entry

An accounting entry made at the end of an accounting period to record earnings or expenses that have occurred but are not yet entered in the accounts.

Asset Account

An account that shows the value of the assets a company controls, which can include cash, equipment, and real estate.

Accrued Interest

Interest that has been incurred but not yet paid, often related to bonds or loans.