Quasi Reorganization Quasi reorganization would be approved by the board of directors and shareholders of the company, when a company is undergoing in financial difficulties, but expecting to grow in the future. This provision is used to reduce the deficit or accumulated shortage or debit balance in the retained earnings by revaluing assets, liabilities, and shareholders’ equity, under unfavorable circumstances. To describe: The two objectives of quasi reorganization.

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Chapter 18, Problem 18.24Q

To determine

Quasi Reorganization

Quasi reorganization would be approved by the board of directors and shareholders of the company, when a company is undergoing in financial difficulties, but expecting to grow in the future. This provision is used to reduce the deficit or accumulated shortage or debit balance in the retained earnings by revaluing assets, liabilities, and shareholders’ equity, under unfavorable circumstances.

To describe: The two objectives of quasi reorganization.

To determine

To describe: The procedural steps of quasi reorganization.

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