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:

Stipulative Definition

A definition that assigns a meaning to a word for the first time, often without regard for common usage.

Polygamy

A marriage practice where an individual has more than one spouse simultaneously.

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A medical condition where the kidneys lose their ability to filter waste and excess fluids from the blood effectively.

Genus

A class or group of entities that share a common characteristic distinct from other groups; in taxonomy, a way to categorize species with shared traits.