In a Business Combination,which of the Following Will Occur

question 28

Multiple Choice

In a business combination,which of the following will occur?

• A)All identifiable assets and liabilities are recorded at fair value at the date of acquisition.
• B)All identifiable assets and liabilities are recorded at book value at the date of acquisition.
• C)Goodwill is recorded if the fair value of the net assets acquired exceeds the book value of the net assets acquired.
• D)None of the above is correct.

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Definitions:

Capital Expenditures Budget

A budget that plans for investments in long-term assets like equipment, buildings, and machinery essential for the business's operations and growth.

Operating Budgets

Financial plans for the day-to-day activities of a business, outlining expected revenues and expenses.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, often used to assess liquidity and manage cash efficiently.

Capital Expenditures Budget

A budget that outlines planned investments in fixed assets, such as machinery, equipment, or buildings, essential for long-term business operations.