It is possible for a partner's capital account to have a negative balance.This is known as a:

Question

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A partner's capital account can have a negative balance if they have taken more withdrawals than their share of profits or made additional contributions. This negative balance is referred to as a capital deficiency. Choosing option B, C, or D does not accurately reflect the situation of a negative balance in a capital account.

It Is Possible for a Partner's Capital Account to Have