Which of the Following Statements Is True

question 159

Multiple Choice

Which of the following statements is true?

• A)Publicly traded U.S.companies must provide an annual report to their shareholders when operating conditions change significantly.
• B)An unqualified independent auditor's report must be included in the annual report.
• C)Notes to the financial statements do not need to be included in the annual report because that information is only for internal users.
• D)None of these answer choices are correct.

---

Definitions:

Business Combination

Transactions or events in which one entity gains control over one or more other businesses, resulting in a consolidated entity.

IFRS 3

An International Financial Reporting Standard that details the requirements for financial reporting on business combinations.

Business Combination

The process of merging two or more entities into one, through acquisitions or other means, for strategic, economic, or operational benefits.

Acquisition-Date Fair Value

The valuation of an acquired company's assets and liabilities at their fair market value on the acquisition date.