How is the accounting equation affected when a partner withdrawscash?A. Liabilities decrease and assets increase; equity is not affected.B. Assets increase and equity decreases; liabilities are not affected.C. Both equity and assets decrease; liabilities are not affected.D. Both assets and liabilities decrease; equity is not affected.

The correct answer is:C. Both equity and assets decrease; liabilities are not affected.…

Answered: How is the accounting equation affected…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 16Q: What types of transactions reduce owners equity? What types of transactions reduce retained...

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Similar questions

What types of transactions reduce owners equity? What types of transactions reduce retained earnings? What do they have in common?
Which of the following can be used to offset a passive loss? a.Dividend income from stock held as an investment b.Active income such as wages c.Pension income d.Passive income such as income from a limited partnership
Which of the following decreases owners equity? A. investments by owners B. losses C. gains D. short-term loans
What two transaction types decrease owner's equity? liabilities and revenue expenses and withdrawals expenses and revenue withdrawals and investments
If it loses significant influence over the associate, the balance of the investment in the associate is recorded at:A. Fair valueB. Identifiable net asset propertyC. Cost methodD. Keep the equity method
Which of the following is FALSE? Group of answer choices Assets + Liabilities = Stockholders' Equity Assets = Liabilities + Stockholders' Equity Assets - Stockholders' Equity= Liabilities None of the above are false.
Which is FALSE ? A. Assets = Owner’s Equity + Liabilities. B. Assets – Liabilities = Owner’s Equity. C. Assets + Liabilities = Owner’s Equity. D. Assets – Owner’s Equity = Liabilities.
All of the following describe a liability except _.
Liabilities are the owner's claim on assets. Group of answer choices True False
Partners' withdrawals of assets are: O Credited to their withdrawals account. Debited to their withdrawals account. Credited to their retained earnings account. Debited to their retained earnings account. Debited to their asset accounts.
Liabilities represent the future obligations of a business entity. True False
To know whether a particular situation for a family, business, or government involves an equilibrium or not, one must O A. determine whether a particular portion of the accounts are in balance or not. O B. determine whether the accounts are in balance. O C. understand the circumstances fully. O D. determine whether the credits equal the debits.

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