Which of the Following Statements Is True About a Company

question 115

Multiple Choice

Which of the following statements is true about a company making an accounting change in its financial statements?

• A)It must disclose the effect of the change on net income.
• B)It is generally entitled to make one accounting change per year.
• C)Companies can never make accounting changes because of the consistency characteristic.
• D)Management must ask permission from the federal government.

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Definitions:

Hostile Takeover

An acquisition attempt by a company or investor group to obtain control of a target company against the wishes of its management and board of directors.

Premium Price

A price that is higher than the usual or standard price, often reflecting higher quality, limited availability, or additional features.

Share Exchange

A transaction where shares of one company are exchanged for shares of another, typically as part of mergers or acquisitions.

Hostile Takeover

A type of acquisition where one company attempts to take control of another without the consent or cooperation of the target company's management or board.