Assuming the existence of two companies, A and B, which of the following is not a business combination? Company C is formed to acquire all the assets and liabilities of Company A and Company B. Both Company A and Company B liquidate. Company A acquires a group of assets of Company B, the group of assets not constituting a business. Company B continues to operate as a company. Company A acquires all assets and liabilities Company B. Company B continues as a company, holding shares of Company A. O Company A acquires all assets and liabilities of Company B, and Company B liquidates.

Assuming the existence of two companies, A and B, which of the following is not a business combination? Company C is formed to acquire all the assets and liabilities of Company A and Company B. Both Company A and Company B liquidate. Company A acquires a group of assets of Company B, the group of assets not constituting a business. Company B continues to operate as a company. Company A acquires all assets and liabilities Company B. Company B continues as a company, holding shares of Company A. O Company A acquires all assets and liabilities of Company B, and Company B liquidates.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter13: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 25DQ

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Assuming the existence of two companies, A and B, which of the following is not a business combination? a. Company A acquires all assets and liabilities of Company B. Company B continues as a company, holding shares of Company A. b. Company C is formed to acquire all the assets and liabilities of Company A and Company B. Both Company A and Company B liquidate. c. Company A acquires all assets and liabilities of Company B, and Company B liquidates. d. Company A acquires a group of assets of Company B, the group of assets not constituting a business. Company B continues to operate as a company.
Assuming the existence of two companies, A and B, which of the following is not a business combination? Company C is formed to acquire all the assets and liabilities of Company A and Company B. Both Company A and Company B liquidate. Company A acquires all assets and liabilities of Company B, and Company B liquidates. Company A acquires all assets and liabilities of Company B. Company B continues as a company, holding shares of Company A. Company A acquires a group of assets of Company B, the group of assets not constituting a business. Company B continues to operate as a company.
Entity A and Entity B combined their businesses. The acquirer in the businesscombination is not clearly identifiable. Which of the following is not an indicator that Entity A is the acquirer? A. Entity A is the initiator of the business combination. B. Entity A’s former owners receive the largest portion of the voting rights in the combined entity. C. Entity A’s former management team dominates the management of the combined entity. D. Entity C, a new entity, is formed and Entity C transfers cash to Entity A and Entity B
Following the completion of a business combination in the form of a statutory consolidation, what is the balance in the new corporation’s Retained earnings account? A. The sum of the acquirer and acquiree retained earnings account balances. B. The acquirer retained earnings account balance C. Zero D. The acquiree retained earnings account balance
When two proprietors decide to combine their businesses, generally accepted accounting principles usually require that noncash assets be taken over at their a.book value as of the date of formation. b.historical cost value as of the date of formation. c.fair market value as of the date of formation. d.residual value as of the date of formation.
Which of the following is not true with regard to a business combination accomplished in the form of a stock acquisition? a. Two companies remain in existence after the combination b. A parent-subsidiary relationship is said to exist c. Consolidated financial statements are normally required d. All of the above statements are true
1- In a business combination resulting in a parent-subsidiary relationship, the identifiable net assets of the subsidiary must be reflected in the consolidated balance sheet at their current values on the date of the business combination. Does this require the subsidiary to enter the current fair values of the identifiable net assets in its accounting records? Explain. 2- The controller of Ahmed Corporation, which has just become the parent of Hassan Company in a business combination, inquires if a consolidated income statement is required for the year ended on the date of the business combination. What is your reply? Explain
Choose the correct. In a father-son-grandson business combination, which of the following is true?a. The father company always must have its total accrual-based income computed first.b. The computation of a company’s accrual-based net income has no effect on the accrual-based net income of other companies within a business combination.c. A father-son-grandson configuration does not require consolidation unless one company owns shares in all of the other companies.d. All companies solely in subsidiary positions must have their accrual based net income computed first within the consolidation process.
When one company buys the assets and liabilities of another company, this is known as which of the following?Choose one answer.a. Limited liability company b. Merger c. Conventional corporation d. Acquisition
In a father-son-grandson business combination, which of the following is true?a. The father company always must have its total accrual-based income computed first.b. The computation of a company’s accrual-based net income has no effect on the accrual-based net income of other companies within a business combination.c. A father-son-grandson configuration does not require consolidation unless one company owns shares in all of the other companies.d. All companies solely in subsidiary positions must have their accrual-based net income computed first within the consolidation process.
An entity shall determine whether a transaction or other event is a business combination by applying the definition in PFRS 3, which requires that: a. All of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination. b. All of the combining entities transfer their net assets, or the owners of those entities transfer their equity interests, to a newly formed entity. c. The assets acquired and the liabilities assumed constitute a business. d. All of the above.
In a business combination, the acquiree is the business that: Select one: a. Finances the business combination. b. Pays the acquisition consideration. c. The acquirer obtains control of in a business combination. d. Obtains control of the acquiree.