Which of the Following Is not Correct with Respect

question 103

Multiple Choice

Which of the following is not correct with respect to mergers under the rules established by FASB Statement No. 164, Not-for-Profit Entities: Mergers and Acquisitions?

• A) If the combination qualifies as a merger, it will be accounted for using the carryover method.
• B) Goodwill is recognized on long term assets only
• C) Assets and liabilities are transferred from both existing entities to the new entity at book value.
• D) The entity resulting from the merger is a new reporting entity, with no activity before the date of the merger.

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Definitions:

Consistent Personality

A stable set of characteristics and behaviors that are predictable and reliable over time.

Virtual Organization

An organization that uses technology to allow individuals to collaborate and work together across distance and time zones.

Internal Talent Pool

A database or inventory of current employees who have the potential to fill future vacancies within an organization, facilitating internal recruitment.

External Partners

Organizations or individuals outside of one's own organization with whom one collaborates or engages in business activities.