Two Companies That Both Sell Fine Timepieces Combine

question 3

Multiple Choice

Two companies that both sell fine timepieces combine.What are they doing?

• A)diversifying, because they both sell the same products
• B)integrating vertically, because they both sell the same products
• C)integrating vertically in a backward direction, because they are sharing distribution
• D)integrating horizontally, because they both sell similar products

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Definitions:

Office Supplies

Items used in offices on a regular basis for the purpose of carrying out tasks; includes items like pens, paper, and staplers.

Unearned Revenue

Money received by a company for goods or services yet to be delivered or performed, recognized as a liability on the balance sheet.

Trial Balance

A statement that lists all the balances of the ledger accounts, used to verify that the total of debit balances equals the total of credit balances.

General Journal

An accounting book where all transactions are initially recorded, based on the double-entry bookkeeping system, before being transferred to specific accounts.