Fact Pattern 41-1B (Questions B5-B7 Apply)

question 33

Multiple Choice

Fact Pattern 41-1B (Questions B5-B7 apply)
DIY Fasteners Company decides to consolidate its operations with Evergrip Studs, Inc., to form Fit-Rite Bolts & Screws Inc.
-Refer to Fact Pattern 41-1B. The articles of consolidation dif?fer from Shrimp Boat's articles of incor?poration. The articles

• A) are replaced by Evergrip's articles of incorporation.
• B) are replaced by the articles of consolidation.
• C) effectively prevent the consolidation.
• D) prevail.

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Definitions:

Identifiable

Capable of being recognized and distinguished from others, often used in accounting and finance to describe assets that can be attributed to a particular entity.

Cash Flows

The inflows and outflows of cash and cash equivalents, representing the operating, investing, and financing activities of a business.

Operating Activities

Transactions and events related to the primary activities of a business, such as selling products or services, that affect the operational cash flow.

Cash Flow Statement

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financial activities.