Which of the Following Statements Is True Regarding the Acquisition

question 117

Multiple Choice

Which of the following statements is true regarding the acquisition method of accounting for a business combination?

• A) The combination must involve the exchange of equity securities only.
• B) The transaction establishes an acquisition fair value basis for the company being acquired.
• C) The two companies may be about the same size, and it is difficult to determine the acquired company and the acquiring company.
• D) The transaction may be considered to be the uniting of the ownership interests of the companies involved.
• E) The acquired subsidiary must be smaller in size than the acquiring parent.

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Definitions:

Social Emotions

Emotions that depend on the thoughts, feelings, or actions of others, such as embarrassment, guilt, or pride.

Self-Conscience Emotions

Feelings that arise from reflection on our actions, which can include guilt, shame, embarrassment, and pride.

Pity

A feeling of sorrow and compassion caused by the suffering and misfortunes of others.

Deep Acting

The process of managing one's emotions by trying to feel the emotions one is attempting to display, as opposed to just outwardly expressing them.