A Vertical Merger Is One in Which the Buyer Expands

question 40

True/False

A vertical merger is one in which the buyer expands forward in the direction of the ultimate consumer or backward toward the source of raw material.

---

Definitions:

Debit Increases

Debit increases refer to the accounting principle where increases in assets, expenses, and losses are recorded on the debit side of a ledger.

Credit Decreases

In accounting, actions that decrease liabilities or increase assets, typically reflected in the credits column of a ledger.

Account

A record that summarizes financial transactions of a specific type, such as revenue, expenses, assets, or liabilities.

Credit

An accounting entry that increases a liability or equity account, or decreases an asset or expense account.