Answer:
The correct statement is: "The fixed cost per unit will decrease when volume increases."
Explanation:
Total fixed costs remain the same within a relevant range, but the <em>fixed cost per unit</em> decreases as production increases, because the same fixed costs are spread over more units produced.
It generates a positive net present value to the shareholders of an acquiring firm.
<h3>Why Do Companies Merge With or Acquire Other Companies?</h3>
Mergers and acquisitions (M&As) are the acts of combining two or more companies or assets in order to stimulate growth, gain a competitive advantage, increase market share, or influence supply chains.
KEY LESSONS
- Mergers and acquisitions (M&As) are the acts of combining two or more companies or assets in order to stimulate growth, gain a competitive advantage, increase market share, or influence supply chains.
- A merger is the joining of two companies in which one of the companies ceases to exist after being absorbed by the other.
- A merger occurs when one company acquires a majority stake in the target company, which keeps its name and legal structure.
To learn more about merger and acquisition from the given link
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Answer:
Required:
Prepare the stockholders’ equity section of the balance sheet at December 31.
Explanation:
check the file attached for the balance sheet at December 31.
Answer:
make an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the amount of interest accrued since the last interest receipt date.
Explanation:
Adjusting entries are used at the end of an accounting period to assign income and expenses that has accrued.
In this instance when the interest reciept day comes after accounting period we need to recognise the amount of interest earned so far.
The amount accrued since last interest payment date is calculated.
This amount has been earned so it should be recognised as revenue. To do this we debit interest receivable and credit interest revenue.
