With Respect to Recognizing and Measuring the Fair Value of a Business

question 56

Multiple Choice

With respect to recognizing and measuring the fair value of a business combination in accordance with the acquisition method of accounting, which of the following should the acquirer consider when determining fair value?

• A) Only assets received by the acquirer.
• B) Only consideration transferred by the acquirer.
• C) The consideration transferred by the acquirer and the fair value of assets received less liabilities assumed.
• D) The par value of stock transferred by the acquirer, and the book value of identifiable assets transferred by the entity acquired.
• E) The book value of identifiable assets transferred to the acquirer as part of the business combination less any liabilities assumed.

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Definitions:

Managing Human Resources

The process of recruiting, hiring, deploying, and managing an organization's employees in order to optimize workforce performance and meet the strategic goals.

HR Triad

A conceptual framework in human resources management that includes three key actors: line managers, HR professionals, and employees.

Human Resources

The department within an organization responsible for managing all matters related to the employment lifecycle, including hiring, training, compensation, and employee relations.

Contributing

The act of giving or adding to something, especially in the context of a group effort or project.