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.

---

Definitions:

Cut and Paste

The process of moving data or text from one location to another by first removing it from its original location and then inserting it into a new one.

First Column

Refers to the initial column in a spreadsheet or table, often containing key information or identifiers for the rows.

Banded Columns

A formatting feature in spreadsheet or table layouts that alternates the background color of columns to improve readability.

Header Column

The top row of a table or spreadsheet that contains the titles or headings for each column.