Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Business Organization

Financial Accounting

1. Introduction to Accounting

Business Organization

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Multiple Choice

A(n) ______ is where one company purchases the property and obligations of another.

franchise

merger

acquisition

partnership

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Verified step by step guidance

Step 1: Understand the concept of acquisition in Financial Accounting. An acquisition occurs when one company purchases the property, assets, and obligations of another company. This is a common business transaction aimed at expanding operations, gaining market share, or acquiring valuable resources.

Step 2: Differentiate acquisition from other terms provided in the problem. For example, a franchise is a business model where a company allows others to operate under its brand, a merger involves two companies combining to form a new entity, and a partnership is a business structure where two or more individuals share ownership and responsibilities.

Step 3: Recognize that the correct term for the scenario described in the problem is 'acquisition,' as it specifically refers to the purchase of property and obligations of another company.

Step 4: Apply this understanding to similar problems by identifying key characteristics of acquisitions, such as the transfer of ownership and obligations from one company to another.

Step 5: Practice distinguishing acquisitions from other business transactions to reinforce your understanding and improve problem-solving skills in Financial Accounting.