Question 1

Under the acquisition method of accounting for a business combination,goodwill is equal to

Accepted Answer

A) The acquired company's ability to generate excess profits . 
B) The excess of the cost of the acquisition plus the fair value of the noncontrolling interest over the fair value of the acquiree's net assets. 
C) The excess of the cost of the acquisition over the fair value of the acquiree's net assets. 
D) The excess of the fair value of acquiree's net assets over the cost of acquisition. 
A) The acquired company's ability to generate excess profits . 
B) The excess of the cost of the acquisition plus the fair value of the noncontrolling interest over the fair value of the acquiree's net assets. 
C) The excess of the cost of the acquisition over the fair value of the acquiree's net assets. 
D) The excess of the fair value of acquiree's net assets over the cost of acquisition.

Question 2

For a business combination,we measure all assets and liabilities of an acquired company at fair value.Fair value

Accepted Answer

A) Is an exit value. 
B) Is an entry value. 
C) Is an appraisal value. 
D) Can be either an exit value or an entry value depending on the circumstances. 
A) Is an exit value. 
B) Is an entry value. 
C) Is an appraisal value. 
D) Can be either an exit value or an entry value depending on the circumstances.

Question 3

Under the acquisition method of accounting for a business combination,restructuring costs are

Accepted Answer

A) Capitalized and amortized over a period not exceeding ten years. 
B) Fees paid to lawyers and accountants to bring about the business combination . 
C) Costs incurred to effect the business combination. 
D) Treated as post acquisition expenses. 
A) Capitalized and amortized over a period not exceeding ten years. 
B) Fees paid to lawyers and accountants to bring about the business combination . 
C) Costs incurred to effect the business combination. 
D) Treated as post acquisition expenses.

Question 4

Under the acquisition method for a business combination,the cost incurred to effect the business combination,such as finders and legal fees are

Accepted Answer

A) Considered part of the historical cost of the business. 
B) Expensed as incurred. 
C) Allocated,along with the purchase price of the acquired company's stock to the assets of the acquiree company. 
D) Deferred until a full accounting of all costs to acquire the acquire company are known. 
A) Considered part of the historical cost of the business. 
B) Expensed as incurred. 
C) Allocated,along with the purchase price of the acquired company's stock to the assets of the acquiree company. 
D) Deferred until a full accounting of all costs to acquire the acquire company are known.

Question 5

How is the recorded cost determined in an acquisition business combination?

Accepted Answer

Under the revised standard for business

Under the acquisition method of accounting for a business combination,goodwill is equal to

For a business combination,we measure all assets and liabilities of an acquired company at fair value.Fair value

Under the acquisition method of accounting for a business combination,restructuring costs are

Under the acquisition method for a business combination,the cost incurred to effect the business combination,such as finders and legal fees are

How is the recorded cost determined in an acquisition business combination?

The Development of Accounting Theory

The Pursuit of the Conceptual Framework

International Accounting

Research Methodology and Theories on the Uses of Accounting Information

Income Concepts,revenue Recognition and Matching

Financial Statement I: the Income Statement

Financial Statements Ii: the Balance Sheet and the Statement of Cash Flows

Working Capital

Long-Term Assets I: Property,plant,and Equipment

Long-Term Assets Ii: Investments and Intangibles

Long-Term Liabilities

Accounting for Income Taxes

Leases

Pensions and Other Postretirement Benefits

Equity

Financial Reporting Disclosure Requirements and Ethical Responsibilities

Filters

Exam 16: Accounting for Multiple Entities

Under the acquisition method of accounting for a business combination,goodwill is equal to

For a business combination,we measure all assets and liabilities of an acquired company at fair value.Fair value

Under the acquisition method of accounting for a business combination,restructuring costs are

Under the acquisition method for a business combination,the cost incurred to effect the business combination,such as finders and legal fees are

How is the recorded cost determined in an acquisition business combination?

The Development of Accounting Theory

The Pursuit of the Conceptual Framework

International Accounting

Research Methodology and Theories on the Uses of Accounting Information

Income Concepts,revenue Recognition and Matching

Financial Statement I: the Income Statement

Financial Statements Ii: the Balance Sheet and the Statement of Cash Flows

Working Capital

Long-Term Assets I: Property,plant,and Equipment

Long-Term Assets Ii: Investments and Intangibles

Long-Term Liabilities

Accounting for Income Taxes

Leases

Pensions and Other Postretirement Benefits

Equity

Financial Reporting Disclosure Requirements and Ethical Responsibilities

Filters