Multiple Choice
When an existing partner sells his interest to another party in a personal transaction ________.
A) it is considered a transaction between the partnership and the new party
B) the old partnership will continue functioning, since the partner is replaced by another party without diluting the old partnership
C) the journal entry simply debits the withdrawing partner's capital account and credits the new partner's capital
D) the equity and assets in the balance sheet always increase by the same amount
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Irrespective of the original profit-and-loss-sharing ratio,the bonus
Q2: Simonsen,Paulson,and Richardson are partners in a
Q3: Raul and Bianca are partners.Raul has a
Q4: Which of the following is TRUE of
Q6: When a partner withdraws his or her
Q7: The withdrawal accounts of a partnership are
Q8: Which of the following is TRUE of
Q9: Which of the following is an advantage
Q10: Neil and Paul formed a partnership.During the
Q11: If a withdrawing partner receives assets worth