COST ACCOUNTING
FINANCIAL TERMINOLOGY
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Acquisition
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Accounts receivable
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Accounts payable
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Affiliate
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Detailed explanation-1: -An acquisition is a business transaction that occurs when one company purchases and gains control over another company. These transactions are a core part of mergers and acquisitions (M&A), a career path in corporate law or finance that focuses on the buying, selling, and consolidation of companies.
Detailed explanation-2: -There are four main types of acquisitions based on the relationship between the buyer and seller: horizontal, vertical, conglomerate, and congeneric.
Detailed explanation-3: -An acquisition is when one company purchases most or all of another company’s shares to gain control of that company. Purchasing more than 50% of a target firm’s stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company’s other shareholders.
Detailed explanation-4: -Cost of acquisition is the total of expenses incurred when a business acquires a new client or a new asset. In accounting, the cost of acquisition is a line item that includes all expenses related to buying an asset. In sales and marketing, the cost of acquisition includes all the costs of acquiring new customers.