Which of the Following Is Not a Necessary Action That

question 16

Multiple Choice

Which of the following is not a necessary action that the partnership must take upon the death of a partner?

• A) Determine the profit or loss for the year to date.
• B) Discontinue business operations.
• C) Close the books.
• D) Prepare financial statements.

---

Definitions:

Statement Of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, dividing cash flows related to operating, investing, and financing activities.

Cost Of Goods

The total expense directly associated with producing goods for sale, including material and labor costs.

Cash Paid

The actual outflow of cash from a company to settle obligations, such as paying for goods, services, or expenses.

Noncash Investing

Transactions that affect a company's investments not involving direct cash flows, such as asset swaps.