An Acquisition Occurs When ______

question 172

Multiple Choice

An acquisition occurs when ______.

• A) one corporation owns 8 percent of the stock of another corporation
• B) one company purchases the property and assumes the obligations of another company
• C) two or more firms combine to form a single company
• D) owners of small companies band together to operate their businesses collectively

---

Definitions:

Recurring Transactions

Transactions that occur regularly, such as monthly subscriptions or utility payments, which can be automated in accounting software.

Adjusting Entries

Bookkeeping records created at the closure of an accounting cycle to distribute revenues and expenses to the timeframe in which they were genuinely incurred.

Onscreen Journal

A digital ledger within accounting software that displays financial transactions in chronological order.

Depreciation

The method of allocating the cost of a tangible asset over its useful life.