Question

If

a partner is permitted to withdraw more than the book value of
his/her interest, the effect of the transaction will increase the
capital accounts of the remaining partners.
Select one:
True
Fals

Answer 1

False

Step-by-step explanation:

If a partner is permitted to withdraw more than the book value of their interest, it would lead to a reduction in the capital accounts of the remaining partners, not an increase. This is because the partner's withdrawal exceeding their interest would result in a deficit in the partnership's equity, which would need to be covered by the other partners' capital accounts to maintain the balance of the accounting equation.

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