Match the Term with Its Definition

question 67

Multiple Choice

Match the term with its definition.
-Outstanding credit that is owed to suppliers

• A)accounts payable (trade credit)
• B)accounts receivable
• C)accumulated depreciation
• D)common stock
• E)current assets (working capital)
• F)current debt (short-term liabilities)
• G)current ratio
• H)fixed assets (property, plant, and equipment [PPE])
• I)gross fixed assets
• J)net fixed assets
• K)other assets

Identify and differentiate among various types of acquisitions (e.g., horizontal, vertical, conglomerate).

Recognize the strategies and mechanisms companies use to defend against hostile takeovers.

Understand the concept of synergy in mergers and acquisitions.

Identify the financial and strategic motives behind leveraged buyouts and going-private transactions.

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Definitions:

Actuarial Estimates

Actuarial estimates are calculations done by actuaries to predict future liabilities, expenses, and life expectancies, often for use in insurance and pension plans.

Other Comprehensive Income

Components of comprehensive income that are excluded from net income, including items such as unrealized gains or losses on foreign investments, pension plan adjustments.

IFRS

A collection of global accounting standards, International Financial Reporting Standards dictate the reporting methods for specific transactions and events in financial statements.

Other Comprehensive Income (OCI)

Items of income and expense that are not included in net income but directly affect equity, such as changes in the value of foreign investments.