Question regarding acquisition of existing company

Discussion in 'General Accountancy Discussion' started by ttreacy, Jan 7, 2019.

  1. ttreacy

    ttreacy

    Joined:
    Sep 20, 2014
    Messages:
    16
    Likes Received:
    1
    Location:
    Central, New York
    Good Morning,

    Company (A) has purchased an existing company (B) in Canada (company A is based in the US), the question I have may seem "stupid like" so bare with me....

    My question is - why would company A need to create a Receivable for Company B?

    Keeping in mind Company B's financials will be consolidated into Company A's for Reporting purposes & as far a I know Company B will be holding their own Receivables & Payables themselves.
     
    ttreacy, Jan 7, 2019
    #1
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.