When a partner withdraws from a partnership,the company can:
A)audit the accounting records and adjust assets to fair market value.
B)credit the account of the partner that withdrew and debit Cash.
C)share any loss or profit from the historical value of assets.
D)None of the above answers is correct.

Question

Quizplus · Accepted Answer

When a partner withdraws, the partnership typically audits the accounting records and adjusts the assets to their fair market value to ensure that the withdrawing partner receives a fair settlement based on the current value of the partnership's assets.

When a Partner Withdraws from a Partnership,the Company Can