1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Gnesinka [82]
1 year ago
5

When one company acquires control of another, how are the acquired company's assets and liabilities recorded?

Business
1 answer:
uranmaximum [27]1 year ago
5 0

The client will tackle all of the target company's money asset and liabilities, whether or not they may be known at the time of the sale or not. This is, even though a patron is not aware of a corporation's money owed and the time of the sale, they'll still be held accountable for them after the acquisition.

The acquisition gets incorporated into the acquirer's stability sheet, like the purchase of another asset. Financing objects trade (cash, debt, and equity), and the asset and liability accounts rise. No new subsidiary gets created.

Buy acquisition accounting is now the usual way to record the acquisition of a company at the balance sheet of the acquiring enterprise. The assets of the received agency are recorded as property of the acquirer at honest market value. This technique of accounting will increase the fair marketplace fee of the acquiring organization.

An acquisition is whilst one enterprise takes over any other organisation, and the acquiring employer will become the owner of the goal employer. In different words, the received organization now not exists following an acquisition because it has been absorbed by the acquirer. The equity stocks of the acquiring agency continue to change.

Learn more about Aquired company here

brainly.com/question/24519774

#SPJ4

You might be interested in
The promotional mix consists of:a. public relations, direct marketing, personal selling, and publicityb. advertising, personal s
Ira Lisetskai [31]

Answer: B

Explanation:

7 0
3 years ago
Kenyon Co. uses the perpetual inventory method. Kenyon purchased 400 units of inventory that cost $6.00 each. At a later date th
olga nikolaevna [1]

Answer:$5600

Explanation:

The FIFO inventory system is an inventory system where the inventory purchased first is the first to be sold.

If 800 units are sold, the inventory sold would be calculated as:

$6 × 400 = $2,400

$8 × 400 = $3200

=$5,600

4 0
3 years ago
The cost performance index (CPI): a. can be used to estimate the projected cost of completing the project. b. indicates that the
Evgen [1.6K]

Answer:

The correct answer is letter "A": can be used to estimate the projected cost of completing the project.

Explanation:

The Cost Performance Index or CPI measures the projected cost of work completed compared to the current cost spent. The CPI represents a ratio of earned value to actual cost. If the CPI is greater than one, the project is under budget. When the CPI equals one the planned and actual costs are equal. If the CPI is higher than one, the project is over budget.

3 0
2 years ago
Look at the map showing the European Union (EU) and its free-trade agreement (FTA) countries.
shepuryov [24]

The actual correct answer is: <u>The European Union's free-trade agreements include agreements with both developed and developing nations.</u>

8 0
3 years ago
Read 2 more answers
According to surveys in the U.S. and the United Kingdom, what are the most frequently used financial performance measures by mul
I am Lyosha [343]

Answer:

Correct answer is (C)

Explanation:

Budgeted profit vs. actual profit, return on investment, profit

6 0
3 years ago
Other questions:
  • Which of the following statements regarding fiscal policy are true according to the macroeconomic consensus in the United States
    7·1 answer
  • When you choose a medium, you are deciding how you will decode the message for transmission. select one:
    12·1 answer
  • What happens if you default on your student loans?
    7·1 answer
  • Two factory plants are making TV panels. Yesterday, Plant A produced twice as many panels as Plant B. Two percent of the panels
    13·1 answer
  • A food service operation that is concerned with sourcing asks suppliers detailed questions about _____ the food is produced. A.
    7·2 answers
  • The accounting records of Eastlake Industries provided the data below. Net income $ 300,000 Depreciation expense 15,000 Increase
    12·1 answer
  • Select all that apply On November 1, 2019, Movers, Inc., paid $24,000 for 2 years' rent beginning on November 1 (assume rent is
    9·1 answer
  • Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, suc
    12·1 answer
  • Jonah earns a commission of 9% of his sales.
    10·1 answer
  • Your company sells consulting services in legal forecasting to multinationals studying foreign market entries. In some countries
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!