Which of the Following Statements Is Correct

question 29

Multiple Choice

Which of the following statements is correct?

• A) Companies may choose between the New Entity Method and the Acquisition Method when accounting for business combinations.
• B) The only acceptable method of accounting for business combinations is the New Entity Method.
• C) The only acceptable method of accounting for business combinations is the Acquisition Method.
• D)The New Entity Method can only be used when Cash is the sole consideration offered by the acquirer in a business combination.

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Definitions:

Disagreements

Instances of conflict or difference of opinion between individuals or groups.

Work Organized

A reference to how work is systematically arranged or structured within an organization to achieve efficiency and productivity.

Antagonistic Attitudes

Hostile or oppositional perspective towards others or certain ideas, often resulting in conflict or resistance.

Conflict Management Style

The approach or strategy an individual or organization uses to handle disagreements, challenges, or disputes in interpersonal or group settings.