One of the Big Financial Questions Associated with Selling a Business

question 13

Multiple Choice

One of the big financial questions associated with selling a business is:

• A)To whom should I sell the business?
• B)How much should I ask for the business?
• C)Should I offer the business to my employees?
• D)Would it be better to liquidate the assets?

Determine the concept of buying bonds at a premium or a discount.

Calculate the premium and discount price of bonds.

Understand the concept of accrued interest in bond transactions.

Compute savings from issuing new bonds at a lower interest rate after calling old bonds.

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Definitions:

Reversing Entry

An accounting entry made at the beginning of an accounting period that reverses or cancels out an adjusting entry made in the previous period.

Adjusting Entry

An entry made in the accounts to adjust revenues or expenses that have been accrued, deferred, or estimated.

Accrued Fees Earned

Revenues that have been earned by providing a service or product, but have not yet been received or invoiced to the client.

Reversing Entry

An accounting entry that is made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous accounting period.