If There Is a Consolidation of Corporations A, B, and C

question 23

Multiple Choice

If there is a consolidation of corporations A, B, and C: ______.

• A) corporations B and C are absorbed into corporation A, and corporation A continues to exist.
• B) all of the corporations continue to exist.
• C) all corporations continue to exist, but corporation A owns all of the stock of corporations B and C.
• D) corporations A, B, and C cease to exist, and a new corporation with the property and assets of the old corporations comes into being.

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Definitions:

Inventory Costing

The method used to value and account for inventory, including approaches such as LIFO, FIFO, and weighted average cost.

Cost of Goods Sold

Direct costs attributable to the production of goods sold by a company, including materials and labor costs.

Sales

The transactions involved in selling goods or services to customers, often tracked to measure business performance.

Goodwill

An intangible asset representing the value of a company's brand, customer relationships, and other non-physical assets acquired during a purchase.