In a Transaction Accounted for Using the Acquisition Method Where

question 31

Multiple Choice

In a transaction accounted for using the acquisition method where consideration transferred is less than fair value of net assets acquired, which statement is true?

• A) Negative goodwill is recorded.
• B) A deferred credit is recorded.
• C) A gain on bargain purchase is recorded.
• D) Long-term assets of the acquired company are reduced in proportion to their fair values. Any excess is recorded as a deferred credit.
• E) Long-term assets and liabilities of the acquired company are reduced in proportion to their fair values. Any excess is recorded as gain.

---

Definitions:

Anxiety

A feeling of worry, nervousness, or unease, often about an imminent event or something with an uncertain outcome.

Patient Interview

A dialogue or consultation between a healthcare provider and a patient aimed at obtaining comprehensive health information for diagnosis, treatment, and care planning.

Describe Feelings

The process of articulating or expressing emotions, sensations, or emotional responses.

Legal Record

Documented evidence of legal transactions, decisions, or proceedings that have legal significance.