Where an Acquisition in an Associate Results in an Excess

question 27

Multiple Choice

Where an acquisition in an associate results in an excess, how is the excess accounted for in the year of acquisition?

• A) CR Investment in associate account.
• B) CR Share of associate profit account.
• C) DR Share of associates retained earnings account.
• D) No adjustment is required due to the single line method of accounting followed under the equity method.

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Definitions:

American Consumers

Refers to the buying behaviors and patterns of individuals residing in the United States, often analyzed for insights into economic health and trends.

American Organized Labor

The collective association of workers in the United States, formed to negotiate for better wages, working conditions, and labor rights through unions.

Christian Right

A political and social movement that seeks to advance conservative Christian values, particularly in the context of American politics.

National Debt

The total amount of money that a country's government has borrowed and is yet to repay.