According to Goold and Campbell, When Combined Units Benefit from Sharing

question 62

Multiple Choice

According to Goold and Campbell, when combined units benefit from sharing knowledge or skills, the synergistic effect is known as

• A)shared tangible resources.
• B)shared know-how.
• C)coordinated strategies.
• D)economies of scale.
• E)new business creation.

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Definitions:

Adjusting Entries

Journal entries made in an accounting period to update the records for accruals and deferrals that have not been fully recorded during the period.

Deferral

A future revenue or expense initially recorded as a liability or asset.

Prepaid Rent

An expense that is paid in advance for the use of property or equipment, recognized over the period of usage.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenses to the periods in which they actually occurred.