Which of the Following Occurs If a Withdrawing Partner Receives

question 163

Multiple Choice

Which of the following occurs if a withdrawing partner receives assets worth more than the book value of his or her equity?

• A) an increase in the remaining partners' capital accounts
• B) no change to the remaining partners' capital accounts
• C) a premium to existing partners
• D) a bonus to the withdrawing partner

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Definitions:

Credit Card

A plastic card issued by a bank or financial institution allowing the cardholder to borrow funds at the point of sale to pay for goods and services based on the cardholder's promise to pay back the borrowed amount plus any agreed-upon fees.

Equal Credit Opportunity Act

A U.S. federal law ensuring that all consumers have an equal chance to obtain credit, prohibiting discrimination.

Marital Status

A legally defined condition relating to an individual's marriage situation, such as single, married, divorced, or widowed.

Fair Debt Collection Practices Act

A U.S. statute established to eliminate abusive debt collection practices by debt collectors, and to promote fair debt collection.