A Key Reason for Acquisitions Is Synergy

question 1

Multiple Choice

A key reason for acquisitions is synergy.Synergy includes all the following except:

• A)revenue enhancements.
• B)cost reductions.
• C)increased debt capacity.
• D)decreased cash flows.
• E)increased efficiency.

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Definitions:

Trial Balance

A trial balance is a report listing the balances of all ledger accounts at a point in time, used to verify that the sum of debits equals the sum of credits in the accounting system.

Journal Entries

Recorded transactions in the financial books of a business, marking debits and credits in accounts affected by financial events.

Accounts Payable

An accounting entry that represents a company's obligation to pay off a short-term debt to its creditors or suppliers.

T Account

A graphical representation in accounting that resembles the letter "T", used to track the increases and decreases in accounts, making it easier to understand transactions.