In the UK,merger Accounting Uses

question 9

Multiple Choice

In the UK,merger accounting uses:

• A)the book value of the target firm to draw up consolidated accounts.
• B)the fair value of the target firm to draw up consolidated accounts.
• C)the market value of the target firm to draw up consolidated accounts.
• D)the net realizable value of the target firm to draw up consolidated accounts

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Definitions:

Vendor's Invoice

A document issued by a vendor to a buyer indicating the products or services provided, quantities, prices, and terms of payment.

Perpetual

Continuing indefinitely without interruption; in accounting, it often refers to systems that continuously update inventory or records.

Inventory System

A method or system used to plan, organize, and control the goods or materials that are held in stock, ensuring efficient management and use of inventory.

Costly

Involving high expenses; describing something that requires significant financial outlay.