How Is the Accounting Equation Affected When a Partner Withdraws

question 60

Multiple Choice

How is the accounting equation affected when a partner withdraws cash?

• A) Both equity and assets decrease; liabilities are not affected.
• B) Assets increase and equity decreases; liabilities are not affected.
• C) Both assets and liabilities decrease; equity is not affected.
• D) Liabilities decrease and assets increase; equity is not affected.

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Definitions:

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A period of major industrialization that took place during the late 1700s and early 1800s, leading to significant changes in society and the economy through the introduction of new technologies and processes.

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