Which of the following is not true with regard to a business combination accomplished in the form of a stock acquisition?
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A: Answer:
Q: Which of the following is NOT true with regard to the statutory consolidation form of business…
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Q: e following must be possible in order for a business combination to exist?
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Q: following situations best describes a business combination to be accounted for as a statutory merge
A:
Q: Which of the following is NOT true with regard to the statutory consolidation form of business…
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Q: Which of the following is incorrect regarding consolidated financial statements?
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Q: Which of the following statements is not correct in relation to consolidation accounting key terms?…
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Q: Which of the following regarding the preparation of Consolidated Financial Statement is correct? A.…
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Q: Which of the following is incorrect regarding consolidated financial statements? a. Consolidation…
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Q: Which one of the following statements is incorrect with regards to a wholly-owned lsubsidiary? 1.…
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Q: Assuming the existence of two companies, A and B, which of the following is not a business…
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Q: Choose the correct. In a father-son-grandson business combination, which of the following is true?a.…
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Which of the following is not true with regard to a business combination accomplished in the form of a stock acquisition?
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- Which of the following is NOT true with regard to the statutory consolidation form of business combination? a. The combining entities both cease to exist after the combination. b. A new corporation must be formed. c. Control of the net assets of the combining entities must be acquired by the new entity. d. The net assets of the combining entities must be acquired with assets of the new corporation.Which of the following situations best describes a business combination to be accounted for as a statutory merger? Select one: a. Two companies combine to form a new third company, and the original two companies are dissolved. b. One company transfers assets to another company it has created c. Both companies in a combination continue to operate as separate, but related, legal entities. d. Only one of the combining companies survives and the other loses its separate identityFollowing 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
- 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.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.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
- Which of the following statements is not correct in relation to consolidation accounting key terms? Select one alternative: Consolidated financial statements are financial statements of a group of entities presented as if that group was acting as a single economic entity. A parent is an entity that has more than one subsidiary. A subsidiary is an entity that is controlled by another entity. A group comprises a parent and all of its subsidiaries.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.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 business combination - stock acquisition, difference between current fair values and book values of subsidiary’s identifiable assets and liabilities on acquisition date is: [a] Accounted for in the parent company’s books [b] Accounted for in the subsidiary’s books [c] not accounted in the books but is accounted for in the preparation of consolidated financial statements [d] totally disregardedIn 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.Choose the correct. What is a basic premise of the acquisition method regarding accounting for noncontrolling interest?a. Consolidated financial statements should be primarily for the benefit of the parent company’s stockholders.b. Consolidated financial statements should be produced only if both the parent and the subsidiary are in the same basic industry.c. A subsidiary is an indivisible part of a business combination and should be included in its entirety regardless of the degree of ownership.d. Consolidated financial statements should not report a noncontrolling interest balance because these outside owners do not hold stock in the parent company.