As in a proprietorship, changes in capital for a partnership may result from three causes. Which one of the following is NOT a cause for change?
A) additional investments by owner
B) drawings
C) allocating profit to the owner or owners
D) collection of account receivable

Question

Quizplus · Accepted Answer

Collection of account receivable does not directly change the capital in a partnership; it affects the business's cash or assets but not the owners' equity or capital directly. Changes in capital are typically due to additional investments, drawings, or allocation of profits.

As in a Proprietorship, Changes in Capital for a Partnership