Two Common Approaches to Accounting for Acquisition of Additional Shares

question 19

Multiple Choice

Two common approaches to accounting for acquisition of additional shares in a subsidiary include:

• A) The combined tranche method and the single-date method.
• B) The step-by-step method and the combined tranche method.
• C) The step-by-step method and the single-date method.
• D) The step-by-step method and the equity method.
• E) The equity method and the single-date method.

---

Definitions:

Growth

The increase in size, value, or importance of an entity or aspect of an entity, often measured in terms of revenues, profits, or market share.

Sales Forecast

A projected calculation of future sales, often based on historical sales data, market trends, and economic conditions.

Growth

An increase in the economic value of a company or economy, often measured by variables such as income, sales, or GDP.

Sales

The total amount of goods or services that are sold within a particular period of time.