When a Partner Leaves,the Partnership Is Dissolved and a New

question 3

True/False

When a partner leaves,the partnership is dissolved and a new partnership may be formed with the remaining partners.

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Definitions:

Accounting Period

A specific time frame for which financial records are maintained and financial statements are prepared, usually annually or quarterly.

Earned

Income or revenue that has been realized through the sale of goods or services.

Fiscal Year

A twelve-month period used for accounting purposes and preparing financial statements, which may or may not align with the calendar year.

Calendar Year

A calendar year refers to the one-year period beginning on January 1 and ending on December 31, used for most civil purposes and by many businesses for accounting and taxation.