Question regarding acquisition of existing company

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

  1. ttreacy


    Sep 20, 2014
    Likes Received:
    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
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