Processing Methods

question 138

Multiple Choice

Processing methods

• A) are the policies and procedures that protect assets from misuse
• B) must be computerized
• C) are the means by which the accounting system collects, summarizes, and reports accounting information
• D) ensure that business laws and regulations are followed

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Definitions:

Liquidation

is the process of bringing a business to an end and distributing its assets to claimants, often resulting from bankruptcy.

Divestiture

The process of selling off a business division, investment, or asset by a company, often as a strategy to focus on core operations, cut losses, or raise capital.

Acquisition

The process of one company purchasing most or all of another company's shares to gain control of that company.

Merger

The combination of two or more companies into a single entity, often to enhance competitiveness or expand market reach.