Why do you think the amount paid for a business may be different from the total value
Question:
Why do you think the amount paid for a business may be different from the total value of its net assets as shown in its financial statements?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 33% (3 reviews)
Apart from the obvious difference that may arise between the net book value of an individual asset a...View the full answer
Answered By
Fahmin Arakkal
Tutoring and Contributing expert question and answers to teachers and students.
Primarily oversees the Heat and Mass Transfer contents presented on websites and blogs.
Responsible for Creating, Editing, Updating all contents related Chemical Engineering in
latex language
4.40+
8+ Reviews
22+ Question Solved
Related Book For
Frank Woods Business Accounting Volume 2
ISBN: 9780273693109
10th Edition
Authors: Frank Wood, Alan Sangster
Question Posted:
Students also viewed these Business questions
-
a. Stock market index information: S&P 500 (stock) index level: Nasdaq Composite (stock) index level: b. Interest rate information : Prime rate: Federal funds rate: Commercial paper rate (90 days):...
-
In January, the board of directors of the Montgomery Corporation, one of Canada's largest retail store chains, was having its regularly scheduled meeting to establish and declare the next quarterly...
-
The Weld, Bergevin, and Magrath article points out that if a company is going to intentionally manipulate earnings, they must be astute enough to present financial statements that still seem...
-
Perez Manufacturing Company began operations on January 1. During the year, it started and completed 1,740 units of product. The financial statements are prepared in accordance with GAAP. The company...
-
Premium Windows makes one type of standard windows for residential buildings. Premium believes that if it prices each window at $60, then it will sell 2,500 windows in January and that sales will...
-
One of Martys partners, Ann, has organized information on lead times, inventory on hand, and lot- sizing rules (established by suppliers): Scheduled receipts are After the dot-com business he tried...
-
The Corporate Winner and People's Choice Winner was Daniel Gallagher from NASA's Scientific Visualization Studio, for his video "Martian Atmosphere Loss Explained by NASA." Watch this video and...
-
Imperial Carpet has the following unadjusted trial balance as of March 31, 2012. The debit and credit totals are not equal as a result of the following errors:a. The balance of cash was understated...
-
Berkner Health Center provides a variety of medical services. The company is preparing its cash budget for the upcoming third quarter. The following transactions are expected to occur: i (Click the...
-
Online Security Buddies provides consulting services to small businesses that require computer security but are too small to have their own IT person on staff. The business had the following account...
-
Rowlock Ltd was incorporated on 1 October 20X8 to acquire Rowlocks mail order business, with effect from 1 June 20X8. The purchase consideration was agreed at 35,000 to be satisfied by the issue on 1...
-
The balance sheet of Hubble Ltd as at 31 May 20X0 is shown below. Hubble Ltd agreed to purchase at this date the freehold premises, plant and machinery and stock of A Bubble at agreed valuations of...
-
A study of fox rabies in southern Germany gave information about different regions and the occurrence of rabies in each region. Based on information from this article, a random sample of n1 = 16...
-
Analyze why a cost-increasing innovation would continue to be use as a technology-based innovations.
-
5) ABC receives a $9,000, 8%, 2-month note. The maturity value is: 6) Tarheel Services is holding a note receivable from one of its customers, and wishes to collect the cash earlier than the maturity...
-
1 The U.S. recently reduced the top statutory corporate tax rate from 35 percent to 21 percent. In addition, the U.S. changed from a global to a territorial tax system for multinational corporations....
-
Discuss the business environment at Xerox and the factors that may have motivated fraudulent activity and evaluate the alleged accounting errors and the materiality of each. Discuss whether or not...
-
What are examples of fixed, variable, and mixed costs incurred by a restaurant?
-
Berg Industries, a family-run small manufacturer, has adopted an ABC costing system. The following manufacturing activities, indirect manufacturing costs, and usage of cost drivers have been...
-
Choose two matrices A and B with dimension 2 x 2. Calculate det A, det B, and det (AB). Repeat this process until you are able to discover how these three determinants are related. Summarize your...
-
A cheque paid by you, but not yet passed through the banking system, is (A) A standing order (B) A dishonoured cheque (C) A credit transfer (D) An unpresented cheque.
-
If 500 was shown added to Purchases instead of being added to a fixed asset (A) Net profit only would be understated (B) Net profit only would be overstated (C) It would not affect net profit (D)...
-
Working Capital is a term meaning (A) The amount of capital invested by the proprietor (B) The excess of the current assets over the current liabilities (C) The capital less drawings (D) The total of...
-
How do ethical dilemmas and moral reasoning processes influence ethical decision-making within organizational contexts, and what strategies can leaders implement to foster a culture of ethical...
-
PubCo, a semiweekly depositor, pays wages on Wednesday, June 3 0 , resulting in a deposit obligation of $ 2 3 , 0 0 0 . Assuming that Monday, July 5 is a federal holiday, when is they deposit due?
-
Williams Gear makes and sells three types of computer laptop sleeves: leather, fabric, and plastic. Management is trying to determine the most profitable mix. Sales prices, demand, and use of...
Study smarter with the SolutionInn App