In a Step Acquisition, Which of the Following Statements Is

question 17

Multiple Choice

In a step acquisition, which of the following statements is false?

• A) The acquisition method views a step acquisition essentially the same as a single step acquisition.
• B) Income from subsidiary is computed by applying a partial year for a new purchase acquired during the year.
• C) Income from subsidiary is computed for the entire year for a new purchase acquired during the year.
• D) Obtaining control through a step acquisition is a significant measurement event.
• E) Pre-acquisition earnings are not included in the consolidated income statement.

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Definitions:

Tranquilizer

A type of psychotropic medication used to reduce tension or anxiety, often by depressing nervous system activity.

Depressants

Depressants are substances that reduce the functioning of the central nervous system, often resulting in a sense of relaxation or drowsiness.

Stimulants

Substances that increase activity in the brain and body, resulting in increased alertness, attention, and energy.

Central-Nervous-System Activity

Refers to the processes and actions coordinated by the brain and spinal cord that include sensory information processing and triggering muscle movements.