Apple Recently Entered the Financial Services Market with Its Version

question 24

Multiple Choice

Apple recently entered the financial services market with its version of a credit card, the Apple Card. The card competes with other credit cards and various financial payment technologies such as Paypal, Venmo, and Android Pay. Industry analysts estimate that 6 out of 10 Americans have a credit card and that credit card use has grown by 42 percent in the past 7 years. The Apple Card entered the market as a

• A) question mark.
• B) raptor.
• C) rocketship.
• D) cash cow.
• E) dog.

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Definitions:

Pre-acquisition Entries

Journal entries made to account for the assets and liabilities of a company before it is acquired by another entity.

Bonus Share Dividend

A reward to shareholders in the form of additional shares instead of cash, based on the number of shares already held, often issued from a company's accumulated reserves.

Pre-acquisition Retained Earnings

The accumulated profits of a company before it was acquired by another entity, which are not included in the calculation of goodwill.

Consolidation Worksheet

A document used in preparing consolidated financial statements that combines the financial data of parent and subsidiary companies.