Bolton Limited Acquires the Net Assets of Pamelia Limited for a Cash

question 10

Multiple Choice

Bolton Limited acquires the net assets of Pamelia Limited for a cash consideration of $100 000.One half is to be paid on acquisition date and one half is payable in one year's time.The appropriate discount rate is 10% p.a.The present value of the cash outflow in one year's time is:

• A)$45 454
• B)$50 000
• C)$54 545
• D)$55 000

Distinguish between obsessive thoughts and compulsive behaviors.

Recognize the role of the nervous system and neurotransmitters in anxiety disorders.

Recognize symptoms and classifications of mood disorders.

Understand the concept of culture-bound disorders.

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Definitions:

Debit Side

The left-hand side of a ledger account, recording increases in assets or expenses and decreases in liabilities or equity.

Account

A record in the general ledger that is used to collect and store debit and credit transactions.

Flow Of Accounting Data

The process by which financial information moves through an organization's accounting system to be documented and reported.

Ledger

A comprehensive collection of all accounts used by an organization, recording all financial transactions through debits and credits.