A Spinoff Is a Form of Retrenchment in Which a Corporation

question 35

True/False

A spinoff is a form of retrenchment in which a corporation sets up one or more of its business or units as a separate company rather than selling it.

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Definitions:

Computerized Accounting System

An application or software used for recording and processing accounting transactions within functional modules such as accounts payable, accounts receivable, and payroll.

Incorrect Account

An accounting error where a transaction is recorded in the wrong account, potentially misleading financial statements.

Computerized Accounting Systems

Digital systems that automate and manage financial transactions and records, enhancing accuracy and efficiency in financial reporting.

Journalizing Errors

Mistakes made during the process of recording transactions in the accounting journal.