S1: An acquirer may be able to obtain control over an entity without transferring any consideration. S2 In preparing working paper eliminating entries on the date of acquisition, the stockholders’ equity account of the acquiree must be eliminated to the extent of the ownership interest of the acquirer only. Group of answer choices S1: False; S2: False S1: True; S2: True S1: True; S2: False S:1 False; S2: True

S1: An acquirer may be able to obtain control over an entity without transferring any consideration. S2 In preparing working paper eliminating entries on the date of acquisition, the stockholders’ equity account of the acquiree must be eliminated to the extent of the ownership interest of the acquirer only. Group of answer choices S1: False; S2: False S1: True; S2: True S1: True; S2: False S:1 False; S2: True

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter2: The Basics Of Record Keeping And Financial Statement Preparation: Balance Sheet

Section: Chapter Questions

Problem 9E

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Statement I: For each business combination, an acquiree is always identified.Statement II: The acquisition date is the date where the acquiree obtains control over the acquirer. a. True, False b. True, True c. False, True d. False, False
2. What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination?
16. An acquisition refers to the process whereby a company simply purchases another company. Question 16 options: True False
Which of the following statements about post-acquisition earnings is incorrect? А. They are the earnings produced subsequent to the acquisition date by members of the group. В. They form part of earnings of the economic entity. С. They are eliminated against the parent's earnings, in a similar fashion to pre- acquisition earnings. D. They form part of earnings of the economic entity and they are eliminated against the parent's earnings, in a similar fashion to pre-acquisition earnings.
text __________________is the residual interest in the assets of the entity after deducting all of its liabilities a. Current Assets b. Equity c. Profit d. None of the given options
33. A purchaser of a business will generally prefer which of the following? An asset purchase to receive new basis for depreciation A stock purchase because the seller will receive capital gains Utilizing a §338(g) election If the selling entity is an S Corporation making a joint §338(h)(10) election All of the above A,C,&D What form is required to report the allocation of the purchase price? ____________
Under PFRS 3, when is a gain recognized in consolidating financial information? Group of answer choices a.When the amount of a bargain purchase exceeds the value of the applicable liability held by the acquired company. b.In an acquisition when the value of all assets and liabilities cannot be determined. c.When any bargain purchased is created d.In a combination created in the middle of the fiscal year
The price at which a share of capital stock may be purchased or sold at a given time is called its a. book value. b. market value. c. stated value. d. par value. Clear my choice It is desirable that a partnership agreement be evidenced by a written contract. Select one: True False A physical count of inventory is necessary to verify the accuracy of the perpetual inventory records. Select one: True False Please answer all questions ill give thumbs up
PFRS 9 permits an entity to make an irrevocable election to present in other comprehensive income changes in the fair value of an investment in an equity instrument. Amounts presented in othercomprehensive income1. May be subsequentlv transferred to profit or loss.2. Shall be subsequently transferred to retained earnings. a. Neither 1 nor 2 b. Either 1 or 2 c. 1 only d. 2 only
PFRS 3 requires that all business combination be accounted for using a. the pooling interest method b. the acquisition method c. either the pooling of interest or acquisition methods d. neither the pooling of interest nor acquisition methods
S1: In an acquisition where the acquirer pays cash for the acquiree assets, thebook value of the acquirer. S2: In acquisition of assets for assets, the ownership structure of the acquiree does not change A. Both statements are incorrect.B. Only S1 is correct.C. Both statements are correct.D. Only S2 is correct.
Acquisition accounting requires an acquirer and an acquirer to be identified for every business combination. Where a new entity (H) is created and two pre-existing entities, S and A, which of these entities will be designated as the acquirer? H S A S or A