The purchase method, also known as the acquisition method, is an accounting approach used in business combinations when one company acquires another. This method requires the acquiring company to record the identifiable assets, liabilities, and any non-controlling interest of the acquired company at their fair values on the acquisition date. Any excess of the purchase price over the fair value of the net identifiable assets is recorded as goodwill.

Purchase price allocation (PPA) is the process of distributing the purchase price of an acquired company among its identifiable assets and liabilities based on their fair values at the acquisition date.

Pushdown accounting is a method used in financial reporting where the acquiring company pushes its new basis of accounting down to the acquired company's financial statements.

Similar to the current ratio but excludes inventory from current assets, as inventory is less liquid.

Rate of return (ROR) is a financial measure that calculates the percentage change in the value of an investment over a certain period of time. It shows the total gain or loss on an investment relative to the initial investment, expressed as a percentage. The calculation considers both capital gains/losses and income generated by the investment. ROR allows investors to evaluate the performance of their investments and compare returns of different investment opportunities. It is a crucial concept in finance and investing.

Recapitalisation is a financial strategy used by companies to restructure their capital composition, usually involving a significant change in their debt-to-equity ratio. This process can be initiated to stabilize a company’s balance sheet, reduce financial risk, improve cash flow, or to fend off hostile takeovers.