Match the Following Items with the Statements Below

question 8

Short Answer

Match the following items with the statements below. Terms may be used more than once.
a.Capital gain
b.Continuity of business enterprise
c.Continuity of interest
d.Dividend
e.Equity change
f.Liability assumption
g.Ordinary gain
h.Ownership change
i.Not recognized
j.Sound business purpose
k.Step transaction
-Presents a problem when the target sells assets that the acquiring corporation does not want to acquire prior to a "Type C" reorganization.

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Definitions:

Supplies

Items that are used in the daily operations of a business or organization, often consumed in the process.

Accounts Receivable

Receivables from customers for products or services rendered by a company, awaiting payment.

Accounts Payable

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

Correcting Entry

An accounting entry made to correct any erroneous or previously misunderstood transactions recorded in the financial statements.