Azimuth Company Purchases a Small Business for $500,000 $$\begin{array} { | l | l | l | } \hline \quad\quad& \quad&\quad \\\hline & & \\\hline & & \\\hline & & \\\hline\end{array}$$

question 146

Essay

Azimuth Company purchases a small business for $500,000.The market value of the business's assets are $850,000,and the market value of the liabilities are $400,000.Please provide the journal entry to record the acquisition of the business along with goodwill,if any.
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Definitions:

Horizontal Analysis

A financial analysis technique that compares line items in financial statements over a series of periods to identify trends and growth patterns.

Quick Ratio

The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.

Current Ratio

A financial ratio indicating how well a company can cover its short-term debts with assets that can be quickly converted into cash within a year.

Decimal Place

The position of a number to the right of the decimal point, used to represent fractions of a whole in decimal notation.