SFAS 141R Requires That All Business Combinations Be Accounted for Using

question 12

Multiple Choice

SFAS 141R requires that all business combinations be accounted for using:

• A) the pooling of interests method.
• B) the acquisition method.
• C) either the acquisition or the pooling of interests methods.
• D) neither the acquisition nor the pooling of interests methods.

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Definitions:

Individuality

The quality or character of a particular person or thing that distinguishes them from others of the same kind, especially when strongly marked.

Mutuality

The sharing of feelings, actions, or relationship characteristics that are mutual or reciprocal between individuals or groups.

Permeability

The quality of allowing liquids or gases to pass through, commonly used in the context of materials, but also metaphorically to describe the flexibility and openness of systems or boundaries.

Self-assertion

The act of confidently and directly expressing one's opinions, needs, and rights without violating the rights of others.