If a partner's capital account is credited with the amount that he or she contributed in cash,which of the following financial statements will be affected?
A) the withdrawal statement
B) the bank reconciliation statement
C) the statement of partners' equity
D) the interest payment schedule

Question

Quizplus · Accepted Answer

The statement of partners' equity shows the changes in each partner's capital account over a period of time. Crediting a partner's capital account with the amount they contributed in cash increases their ownership in the partnership, which is reflected in this statement. The withdrawal statement, bank reconciliation statement, and interest payment schedule are not affected by this transaction.

If a Partner's Capital Account Is Credited with the Amount