Which of the Following Statements Is Correct

Multiple Choice

Which of the following statements is correct?

A) Companies may choose between the New Entity Method and the Acquisition Method when accounting for business combinations.
B) The only acceptable method of accounting for business combinations is the New Entity Method.
C) The only acceptable method of accounting for business combinations is the Acquisition Method.
D) The New Entity Method can only be used when Cash is the sole consideration offered by the acquirer in a business combination.