When the Situation in the Business Becomes Acute,the Issue of Management

question 3

Multiple Choice

When the situation in the business becomes acute,the issue of management succession should be entrusted to someone who is

• A) Neither part of the family nor part of the business
• B) A family member
• C) The closest friend of the family
• D) A company employee

Calculate the total consolidated net assets after a business combination.

Identify and compute fair values adjustments in business combinations.

Determine the consolidated financial statement figures such as revenues, common stock, and equipment after a business combination.

Compute the consideration transferred in a business acquisition.

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Definitions:

Collection Float

The delay between when a check is deposited into a bank account and when the funds are available to the depositor, affecting cash flow.

Cheques

Cheques are financial instruments that order a bank to pay a specific amount of money from a person’s account to the person in whose name the cheque has been issued.

Deposit

Money placed in a financial institution for safekeeping, which can earn interest and is often used to secure transactions.

Balance

The total amount of funds in an account or the difference between the total debits and credits in an account.