Accounting Changes by the Financial Accounting Standards Board (FASB) in the US

question 27

Multiple Choice

Accounting changes by the Financial Accounting Standards Board (FASB) in the US:

• A) eliminated the "purchase method," allowing only the "pooling-of-interests" method for mergers and acquisitions
• B) eliminated the "pooling-of-interests" method, allowing only the "purchase method" for mergers and acquisitions
• C) allow for both the "purchase method" and the "pooling-of-interests" method for mergers and acquisitions
• D) none of the above

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Definitions:

Credit Side

The section of an account where increases in liabilities, equity, and revenue, or decreases in assets and expenses are recorded.

Chart Of Accounts

A systematic listing of all the accounts used by an organization, representing different types of transactions.

Intangible Items

Assets that do not have a physical form yet are valuable because of the advantages or rights they confer to a business, like patents or trademarks.

Physical Items

Tangible objects or goods that can be seen, touched, and measured.