Whether Cash Is the Predominant Form of Payment Will Depend

question 123

True/False

Whether cash is the predominant form of payment will depend on a variety of factors. These include the acquirer's current leverage, potential near-term earnings per share dilution of issuing new shares, the seller's preference for cash or acquirer stock, and the extent to which the acquirer wishes to maintain control over the combined firms.

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Definitions:

Salaries Payable

A liability account that records the amount of salaries owed to employees but not yet paid.

Accrued Expenses

Expenses that have been incurred but not yet paid, recognized in the accounting period they are incurred, not when they are paid.

Cash Is Paid

A transaction method where payment for goods or services is made with cash at the point of sale or billing.

Accrued Expenses

Expenses that have been incurred but not yet paid, recognized in accounting even in the absence of supplier invoices.