The following are examples of events that may fall under the definition of restructuring provision and reported as liability, except Group of answer choices changes in management structure, for example, eliminating a layer of management. the closure of business locations in a country or region or the relocation of business activities from one country or region to another. sale or termination of the entire business. fundamental reorganizations that have a material effect on the nature and focus of the entity’s operations.

The following are examples of events that may fall under the definition of restructuring provision and reported as liability, except Group of answer choices changes in management structure, for example, eliminating a layer of management. the closure of business locations in a country or region or the relocation of business activities from one country or region to another. sale or termination of the entire business. fundamental reorganizations that have a material effect on the nature and focus of the entity’s operations.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter7: Corporations: Reorganizations

Section: Chapter Questions

Problem 4DQ

See similar textbooks

Similar questions

46-In recent years, there is a great need of uniformity in accounting standards and practices because of O a. Multinational corporation O b. None of the options O c. Corporate internal policies O d. Local market demand
15-From the options given below identify an event or condition that may not cast significant doubt on the entity's ability to continue as a going concern. a. Emergence of a highly successful competitor b. Change from cash-on-delivery to credit transactions with suppliers c. Management intentions to liquidate the entity or to cease operations d. Inability to obtain financing for essential new product development or other essential investments
84) To what do financial controls refer to? a) Controls on mergers and acquisition. b) Controls on financial strategy implementation c) Management processes including budgeting, goal-setting and external audits. d) Internal processes only.
46. Which of the following situations are likely to reduce agency conflicts between stockholders and managers? Group of answer choices a. Paying managers large fixed salaries. b. Enacting laws that increase the likelihood of corporate takeovers. c. Placing restrictive covenants in debt agreements like avoiding risky projects. d. All of the statements are correct. e. Two of the statements are correct.
Question 27 In reference to the FASB disclosure requirements about a business combination in the period in which the combination occurs, which of the following is correct? Answers: A. Firms are not required to disclose the business purpose for a combination. B. Firms are not required to disclose the name of the acquired company. C. Firms are required to disclose the nature, terms and fair value of consideration transferred in a business combination. D. Firms are not required to disclose the details about step acquisitions. Question 28 Which one of the following statements is correct for an investor company? Answers: A. Under the equity method, the balance in the Investment in Osprey Co. account can be negative if the investee corporation operates at a loss. B. Under the equity method, the balance in the Investment in Osprey Co. account will increase when cash dividends are received.…
27.Which of the following is not one of the basic shareholders rights Group of answer choices The right to inspect the accounting records of the company The right to participate in the proceeds of the sale of corporate assets upon liquidation of the corporation The right to participate in earnings The right to maintain one's proportional interest in the corporation
18. Which of the following is not an incentive for company managers to exercise their accounting discretion? Select one: a. Accounting-based debt covenants b. Contests for corporate control c. Management compensation contracts d. Report a company's performance faithfully
26 S1: Consolidated financial statements are typically prepared when one company has controlling financial interest unless such control is likely to be temporary.S2: Acquisition related costs in a business combination includes professional or consultancy fees, costs of registering and issuing debt and equity securities and general administrative costs. Group of answer choices False; False False; True True; False True; True
80 For which of the following matters should an auditor obtain written management representations? Group of answer choices Management’s compliance with contractual agreements that may affect the financial statements. Management’s knowledge of future plans that may affect the price of the entity’s stock. Management’s cost-benefit justifications for not correcting internal control weaknesses. Management’s acknowledgment of its responsibility for employee’s violations of laws.
12-Which of the following concept states that a business will continue its operations for the foreseeable future and the company will not be forced to liquidate in near future. a. Accrual basis b. Materiality c. Going concern d. Consistency concept
The concepts of the appointment, duties of directors as well as to whom these duties areowed together with the effects and procedure for mergers and acquisition as well as the raising ofcapital and winding up by companies have been subject to a long-standing debate in the countryand beyond. Whereas some believe that a reformation in the Law is the only way out, others areof the opinion that these are issues that would die out with the passage of time and should thereforebe left as it is. As a member of the society for black business administration students you havebeen invited to attend the 35th international conference on law reform with a slot to present aExaminer: Derick Ohemeng Page 2 of 2position paper on the subject. Cease the opportunity to clarify the position of the law in respect ofthe above using statutes and caselaw as your main point of reference
A quasi reorganization is sometimes employed by a firm undergoing financial difficulties, but with favorable future prospects. What are two objectives of this procedure? Briefly describe the procedural steps.