In a Consolidation,two or More Corporations Combine in Such a Way

question 53

True/False

In a consolidation,two or more corporations combine in such a way that each corporation ceases to exist.

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Definitions:

Marketable Debt Securities

Investments in bonds or other debt securities that are available for sale before their maturity date.

Idle Cash

Refers to the money that a company has not invested or used in any way to earn more income.

Equity Method

An accounting technique used by firms to assess the profits earned from their investments in other companies, by reporting these profits proportional to their ownership percentage.