Pooling of Interests Method for Accounting for Business Combinations Has

question 123

Multiple Choice

Pooling of interests method for accounting for business combinations has been criticized because it tends to allow recording of acquisitions

• A)at artificially high amounts.
• B)at artificially low amounts.
• C)at exact amounts.
• D)at amounts equal to fair value.

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Definitions:

Ex-Dividend Date

The date on which a stock begins trading without the right to receive the next dividend payment, causing its price to adjust downwards.

Brokers

Intermediaries that facilitate buying and selling of securities, commodities, or other financial instruments on behalf of clients.

Sales

The exchange of goods or services for money, representing the primary source of revenue for most businesses.

Dividend Announcement

is a public declaration by a company of its intention to pay out earnings to its shareholders in the form of dividends.