Vanovo Ltd

Multiple Choice

Vanovo Ltd.has purchased several companies in the retail sector.Recently,Vanovo purchased both a coffee and donut chain (that also owned bakeries) and a submarine sandwich chain.Unfortunately,the planned synergies between these two retail chains did not arise.What effect would this have on the financial statements of Vanovo Ltd. ,the parent company?

A) The financial statements will be incorrectly calculated and should be checked.
B) The fixed assets and goodwill recorded at acquisition could be impaired.
C) Risk of material misstatement for payroll expenses will increase.
D) Costs of goods sold will likely be overstated for both of the new chains.