There Are Many Forms of Business Combinations That Can Occur

question 20

Multiple Choice

There are many forms of business combinations that can occur. However, for which of the following are the requirements for accounting for a business combination NOT used?

• A)A acquires the assets only of B, and B pays off the liabilities and then liquidates.
• B)A acquires all the assets and only some of the liabilities of B, and B pays the remaining liabilities before liquidating.
• C)The business combination results in the formation of a joint venture.
• D)A acquires a group of net assets of B, the group of net assets constituting a business, such as a division, branch or segment, of B.

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Definitions:

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