Sally Corp B) C) D)

question 89

Multiple Choice

Sally Corp. received payment on a long-term receivable for $980,000. What effect does this transaction have on these accounts?

• A) \[\begin{array} { | l | l | l | }
• \hline \text { Total Assets } & \text { Total Liabilities } & \text { Shareholders' Equity } \\
• \hline \text { Increase by } \$ 980,000 & \text { Decrease by } \$ 980,000 & \text { No effect } \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | l | }
• \hline \text { Total Assets } & \text { Total Liabilities } & \text { Shareholders' Equity } \\
• \hline \text { Decrease by } \$ 980,000 & \text { Increase by } \$ 980,000 & \text { No effect } \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | l | }
• \hline \text { Total Assets } & \text { Total Liabilities } & \text { Shareholders' Equity } \\
• \hline \text { No effect } & \text { Decrease by } \$ 980,000 & \text { No effect } \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | l | }
• \hline \text { Total Assets } & \text { Total Liabilities } & \text { Shareholders' Equity } \\
• \hline \text { No effect } & \text { No effect } & \text { No effect } \\
• \hline
• \end{array}\]

Grasp the concept of synergy and its importance in mergers and acquisitions.

Evaluate the effect of mergers and acquisitions on shareholder value.

Identify the mechanisms of action in corporate control contests.

Understand the tax implications of mergers and acquisitions.

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Definitions:

Realistic Scenario

A scenario grounded in reality, plausible and possible under current conditions, used for planning or analysis.

Landau Commission

A specific commission, potentially referring to a historical or organizational body, tasked with investigating or addressing particular issues. (Without further context, its specific mandate or origin cannot be precisely defined).

Consequentialist

A philosophy which judges the rightness or wrongness of an action based on the outcomes or consequences it produces.

Deontologist

An ethicist or philosopher who believes in deontology, a theory which asserts that the morality of an action is based on whether that action itself is right or wrong under a series of rules, rather than based on the consequences of the action.