• 2022-05-29
    In a merger, the acquiring firm assumes all liabilities of the target firm. Assumed liabilities include all but which of the following?
    A: Current liabilities
    B: Long-term debt
    C: Warranty claims
    D: Fully depreciated operating equipment
    E: Off-balance sheet liabilities
  • D

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    • 0

      Which of the following current liabilities is/are a known amount? ( ) A: Accounts Payable B: other three choices are all known amounts. C: Payroll Liabilities D: Unearned Revenue

    • 1

      Which of the following statement related to the three elements in a balance sheet is not true? A: Liabilities= Assets + Owners’ equity B: Assets refer to the resources controlled by the firm C: Liabilities refer to the amounts owed to lenders and other creditors D: Owner’s equity refers to the residual interest in the net assets of an entity that remains after deducting its liabilities

    • 2

      Since payment is due within one year, the current portion of long-term debt should be reported separately in the long-term liabilities section of the balance sheet.

    • 3

      Current liabilities differ from long-term liabilities based on: A: the amount owed. B: the financial situation of the creditor. C: the interest rate charged. D: when the debt is due. E: current economic conditions.

    • 4

      Which of the following statement related to the three elements in a balance sheet is not true? A: A. Assets refer to the resources controlled by the firm B: B. Liabilities refer to the amounts owed to lenders and other creditors C: C. Owner’s equity refers to the residual interest in the net assets of an entity that remains after deducting its liabilities D: D. Liabilities= Assets + Owners’ equity