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4 years ago

Without effective due diligence the

Business

1 answer:

gtnhenbr [62]4 years ago

5 0

Answer:

b. acquiring firm is likely to overpay for an acquisition.

Explanation:

Due diligence is the process of carefully evaluating a business from different perspectives before making a buy decision. It is a measure of prudence before committing to the acquisition process. Due diligence will involve scrutiny of legal aspects and financial status of a business.

From a legal point of view, due diligence will check legal impediments such as licensing. Other legal documents to review include employee and business contracts. Financial aspects of due diligence involve verification of the accuracy of financial statements as presented by the seller.

Sellers are likely to overstate the worth of a business to attract buyers. Their instances where sellers fail to disclose liabilities. Lack of conducting due diligence will lead to the acquisition of an overpriced entity.

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Alt Corp. issues 5,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, increases are ma

HACTEHA [7]

Answer:

c. Common Stock $50,000 and Paid-in Capital in Excess of Par Value $20,000.

Explanation:

The journal entry for issuance of the common stock for cash is shown below:

Cash A/c Dr $70,000

To Common stock $50,000 (5,000 shares × $10)

To Additional paid in capital A/c - Common stock A/c $20,000

(Being the common stock is issued for cash)

While recording this entry it increased the assets so the cash account is debited while at the same time it also increased the common stock for $50,000 and the additional paid in capital in excess of par value i.e $20,000 so both these account are credited

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4 years ago

Tech A says that packing a wheel bearing assembly can be done by hand with proper results. Tech B says that packing a wheel bear

AfilCa [17]

Tech A says that packing a wheel bearing assembly can be done by hand with proper results. Tech B says that packing a wheel bearing assembly with a bearing packer will get the proper results. The two statements are right. This is further explained below.

<h3>What is a wheel bearing?</h3>

Generally, the wheel bearing is simply defined as an important component of a vehicle's braking, steering, and suspension systems.

In conclusion, The one-piece hub assembly is located between the drive axle and the brake disc.

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2 years ago

Cornerstone, Inc. has $125,000 of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell

kotegsom [21]

Answer:

Alternative of cleaning and shipping is better as loss value is less.

Relevant cost of this alternative is $23,000 incurred for cleaning and shipping.

Explanation:

Evaluating both the proposals

In case the goods are sold as it is then net cost/ loss = Carrying value of inventory - Sales Revenue

= $125,000 - $45,000 = $80,000

In case the goods are cleaned and shipped then

Total cost = $125,000 + $23,000 = $148,000

Revenue = $80,000

Net loss/ cost = $148,000 - $80,000 = $68,000

Thus Since the loss value is less i alternative 2 that is of cleaning and shipping, it shall be chosen.

The relevant cost of that alternative is $23,000 incurred in cleaning and shipping.

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3 years ago

On jan. 2, callie company received a $700 payment from a customer previously billed for services performed. the journal entry to

svp [43]

To record On Jan 2, Callie Taylor received a $700 payment from a customer formerly billed for services performed. The journal entry to record this transaction would contain a debit to the cash account and a credit to the Accounts Receivable account.

<h3>What is Journal entry?</h3>

A journal entry exists as an act of keeping or creating records of any transactions either economic or non-economic. Transactions exist listed in an accounting journal that indicates a company's debit and credit balances. The journal entry can consist of several recordings, each of which exists either a debit or a credit.

A journal entry exists as a record of the business transactions in the accounting books of a business. A properly recorded journal entry consists of the correct date, amounts to be debited and credited, an explanation of the transaction, and a unique reference number. A journal entry exists as the first step in the accounting cycle.

Hence, To record On Jan 2, Callie Taylor received a $700 payment from a customer formerly billed for services performed. The journal entry to record this transaction would contain a debit to the cash account and a credit to the Accounts Receivable account.

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2 years ago

Which multimedia and interactive elements do you think would best support your viewpoint on the topic you chose for your blog? W

damaskus [11]

Answer:

I will use images and details from credible websites, which will boost my own credibility and support my claim. I will also use charts and graphs from trusted web resources, such as government and university sites, to make my supporting evidence clear

Explanation:

I took the test

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3 years ago

Read 2 more answers