Give difference between Liquidation and Reorganization.

Q: What are the Criteria of “Creditable Acquisitions” Please describe!

A: There are many factors that determine if an acquisition is a creditable one or not and for which we…

Q: Describe the accounting for recapitalization and/or quasi-reorganization

A: A Quasi-Reorganization is a process through which deficit of retained earnings can be eliminated. It…

Q: Is there a need to regulate mergers? Explain

A: A contract under which two organizations unite to become a new organization is known as a merger.…

Q: What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination?

A: Since there is no revenue and expense of the acquire upto the date of acquisition.

Q: What is the difference between an operating merger and a financial merger?

A: Introduction: A process or an arrangement in which two or more companies are merged to create one…

Q: What is 'fair value',and why is it relevant to consolidation accounting?

A:

Q: Under normal conditions, how does a reorganization plan become effective?

A: Reorganisation Plan:   It refers to a plan filed with a bankruptcy court judge by a company. The…

Q: What are the sources of synergy after acquisitions and mergers?

A: Merger and acquisitions is two companies working together for the purpose of achievement of…

Q: Differentiate between a Chapter 7 liquidation and a Chapter 11reorganization.

A: Liquidation is mainly defined as selling off assets with proceeds distributed to creditors. But in…

Q: Discuss the effects and procedure for mergers and acquisition.

A: SOLUTION- Mergers and acquisition is a part of almost every industry, as is its lasting effect on…

Q: In the context of Merger & Acquisition, What is the definition for Purchase Price and why is it…

A: Merger refers when two or more companies merge to form a single legal entity. Mergers are made so…

Q: Liquidation Premise of valuation

A: Liquidation represents the end of the business operations of the company that includes the forced…

Q: In the context of Merger & Acquisition, What is the definition for Structure and why is it…

A: A mergers and acquisition structure is a binding agreement between the two parties, which specifies…

Q: What is the difference between an acquisition and a merger?

A: Mergers and acquisitions refer to the process in which two companies are consolidated by means of…

Q: What is financial merger?

A: Merger refers to the strategic alliance between the two companies to operate more efficiently with…

Q: Explain instances when liquidation value should be used in valuation and why it should be used over…

A: The liquidation value method is the net fee of a corporation's bodily property if it has been to…

Q: What types of proposals might a reorganization plan include?

A: 1) Changes in the company's operations as a proposed plan: New product lines introduced,…

Q: Which of the following statements is incorrect? Select the correct response: In practice, the…

A: Liquidation value can be obtained by the amount realised from the total non-cash assets reduced by…

Q: What are the advantages of a formal reorganization under Chapter 11?

A: Chapter 11 is the one that deals with reorganization. Also known as chapter 11 bankruptcy is…

Q: In your opinion, what is/are the problem/s with the Book Value per Share approach and the…

A: Book value per share is the ratio of dividend available for equity shareholders and number of…

Q: Explain the difference between pooling of interest and purchase method of accounting for…

A: Amalgamation occurs when two or more entities combine to form a new entity. It is of two types:…

Q: The benefits from merger or acquisition

A: Merger and acquisition is a corporate strategy in which two or more companies combine to form a new…

Q: Analyze why disposition rather than acquisition is a characteristic

A: Gain or Loss on Disposition refers to the gain or loss resulting from the sale, exchange, or other…

Q: Define Liquidation?

A: Liquidation is the process through which an entity comes to an end and is being formally closed. It…

Q: Discuss circumstances in which a Management Buy - Out (MBO) might be an appropriate form of…

A: Management Buy-Out (MBO) involves the pooling of resources by the management team in order to…

Q: Define the term Liquidation.

A: Liquidation is the process of bringing a business to an end and distributing its assets to…

Q: Define assignee (in informal liquidation)

A: The large corporate may face failures each year due to economic factors like weakness of the…

Q: Describe how, despite the fact they include different accounts, conceptually, the [C] entry under…

A: Bookkeeping is defined as the recording of the financial transactions and it is the part of the…

Q: Distinguish between operating mergers and financial mergers.

A: Definition: Merger: A process or an agreement where two or more firms combine together to form one…

Q: Define Noncash Acquisitions.

A: The acquisition involves one party selling out to another wherein the buying party combines both the…

Q: O Liquidation

A: Reorganization is the process of making changes in the existing business to help it in achieving…

Q: What is the difference between a merger and a consolidation?

A: Merger : A merger can be characterized as the substantive and legislative joining of two or more…

Q: What is a LIFO liquidation?

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: What is the purpose of valuation in terms of mergers and acquisition?

A: Purpose of the valuation in terms of mergers and acquisition. Merger Merger means when two or more…

Q: How are acquisition costs recorded in a merger?

A: Acquisition costs: These are the costs incurred in the process of acquisition.

Q: Define assignment (in informal liquidation)

A: When the performance of a firm is very poor where its existence is a mere waste, there would also be…

Q: Difference between Internal reconstruction and External reconstruction (Merger and acquisition)?

A: Definition: Acquisition: The acquisition refers to the business combination when one entity or…

Q: What is the difference between statutory merger, staturory consolidation and statutory acquisition?

A: Merger, acquisition and consolidation are three forms of business reorganisation with other…

Q: What Is the difference between statutory merger, statutory consolidation and statutory acquisition?

A: The difference between statutory merger, statutory consolidation and statutory acquisition is…

Q: What method is used to account for mergers?

A: Merger is when two companies are liquidated to form a joint new company.

Q: Define LIFO liquidation.

A:

Q: List the priority of claims for the distribution of a liquidatedfirm’s assets.

A: Liquidation:  The liquidation process generally takes place when the firm is deemed to be far gone…

Q: What is purchase accounting for mergers?

A: Accounting for merger: An acquisition is when one company acquires most or all of the shares of…

Q: Define reorganization costs.

A: The reorganization costs are also known as restructuring costs.