Teri, Doug, and Brian Are Partners with Capital Balances of $20,000

question 190

Multiple Choice

Teri, Doug, and Brian are partners with capital balances of $20,000, $30,000, and $50,000 respectively. They share income in the ratio of 3:2:1. Income Summary with a debit balance of $30,000 is closed to the capital accounts. Doug withdraws from the partnership. How much cash does he get upon withdrawal?

• A) $30,000
• B) $20,000
• C) $40,000
• D) $24,000

---

Definitions:

Honesty

The quality of being truthful, sincere, and free of deceit.

Misrepresentation

Misrepresentation is the act of providing false, misleading, or partially true information with the intent to deceive or manipulate a situation or decision.

Persuasion

The act or process of influencing someone's beliefs, attitudes, or actions through argument, reasoning, or appeal.

Pay Cut

A reduction in the amount of money an employee is paid for their work.