Clu,Dolf,and Elton Do Business as Fertile Valley Farm

question 20

Multiple Choice

Clu,Dolf,and Elton do business as Fertile Valley Farm.Clu's relationship to the firm ends,but it continues to do business.This is

• A)dissociation.
• B)dissolution.
• C)winding up.
• D)wrongful.

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Definitions:

Liability

A financial obligation or debt owed by a company or individual to another entity, payable in money, goods, or services.

Account Type

Categories under which financial transactions are recorded, such as assets, liabilities, equity, revenue, and expenses.

Prepaid Rent

Expenses paid in advance for the use of property or equipment that is recorded as an asset until the period it benefits.

Balance Sheet

A financial outline showing the holdings, debts, and the portion belonging to shareholders of a company on a certain date.