Which of the Following Statements Does Not Describe a Requirement

question 21

Multiple Choice

Which of the following statements does not describe a requirement that must be met in a tax-deferred reverse triangular merger?

• A)The 40 percent continuity of interest test must be met with respect to the stock transferred from the acquisition corporation to the target corporation shareholders.
• B)The target must hold substantially all of the target corporation's properties and the properties of the acquisition subsidiary after the merger.
• C)The continuity of business enterprise test must be met with respect to the target corporation.
• D)The target corporation shareholders must receive voting stock in the acquiring corporation.

---

Definitions:

Financial Information

Data regarding the monetary operations and condition of a business, such as revenue, expenses, assets, and liabilities.

Chart of Accounts

An organized list of all accounts in a business's accounting system, categorically laid out to show the financial structure.

View Register

View Register typically refers to accessing a detailed record or log of transactions for a particular account, often used in financial software.

Specific Account

A detailed report or record pertaining to an individual financial account within a larger accounting system or framework.