Assuming the existence of two companies, A and B, which of the following is not a business combination? Company C is formed to acquire all the assets and liabilities of Company A and Company B. Both Company A and Company B liquidate. Company A acquires a group of assets of Company B, the group of assets not constituting a business. Company B continues to operate as a company. Company A acquires all assets and liabilities Company B. Company B continues as a company, holding shares of Company A. O Company A acquires all assets and liabilities of Company B, and Company B liquidates.
Assuming the existence of two companies, A and B, which of the following is not a business combination? Company C is formed to acquire all the assets and liabilities of Company A and Company B. Both Company A and Company B liquidate. Company A acquires a group of assets of Company B, the group of assets not constituting a business. Company B continues to operate as a company. Company A acquires all assets and liabilities Company B. Company B continues as a company, holding shares of Company A. O Company A acquires all assets and liabilities of Company B, and Company B liquidates.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter6: Audit Evidence
Section: Chapter Questions
Problem 15CYBK
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![Assuming the existence of two companies, A and B, which of the following is not a business
combination?
Company C is formed to acquire all the assets and liabilities of Company A and Company B. Both Company A
and Company B liquidate.
Company A acquires a group of assets of Company B, the group of assets not constituting a business. Company
B continues to operate as a company.
Company A acquires all assets and liabilities
Company B. Company B continues as a company, holding shares
of Company A.
O Company A acquires all assets and liabilities of Company B, and Company B liquidates.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F16aef1ed-7196-4c00-9fb2-59032580bfc2%2Fa3689084-5316-485b-849f-71b4223f63a2%2Fbktsiz6z_processed.png&w=3840&q=75)
Transcribed Image Text:Assuming the existence of two companies, A and B, which of the following is not a business
combination?
Company C is formed to acquire all the assets and liabilities of Company A and Company B. Both Company A
and Company B liquidate.
Company A acquires a group of assets of Company B, the group of assets not constituting a business. Company
B continues to operate as a company.
Company A acquires all assets and liabilities
Company B. Company B continues as a company, holding shares
of Company A.
O Company A acquires all assets and liabilities of Company B, and Company B liquidates.
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