Marshall Retires from the Partnership of Marshall,Mark,and Dennis

question 141

Multiple Choice

Marshall retires from the partnership of Marshall,Mark,and Dennis.Marshall had a capital balance of $25,000.If Marshall received $25,000 as final settlement,how will this transaction affect the balance sheet items?

• A) Cash will increase.
• B) Liabilities will increase.
• C) Liabilities will decrease.
• D) Equity will decrease.

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