Which of the Following Statements Is True

question 15

Multiple Choice

Which of the following statements is true?

• A) The pooling of interests for business combinations is an alternative to the acquisition method.
• B) The purchase method for business combinations is an alternative to the acquisition method.
• C) Neither the purchase method nor the pooling of interests method is allowed for new business combinations.
• D) Any previous business combination originally accounted for under purchase or pooling of interests accounting method will now be accounted for under the acquisition method of accounting for business combinations.
• E) Companies previously using the purchase or pooling of interests accounting method must report a change in accounting principle when consolidating those subsidiaries with new acquisition combinations.

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Definitions:

X-axis

The horizontal axis in a coordinate plane, often used to represent the independent variable in a graph.

Standard Deviations

A measure that quantifies the amount of variation or dispersion of a set of numerical values.

Distribution

In statistics, it refers to the way in which data or values are spread out or distributed across a range of possibilities.

Z Score

A statistical measure illustrating the relation of a value to the mean of its group by detailing it in standard deviations from the mean.