Which of the Following Methods of Accounting for Business Combinations

question 86

Multiple Choice

Which of the following methods of accounting for business combinations has been viewed as an important motivation for business combinations?

• A)Pooling of interests
• B)The purchase method
• C)The new entity approach
• D)Proportionate consolidation

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Definitions:

Weber Fraction

A principle stating that the just noticeable difference between two stimuli is proportional to the magnitude of the stimuli, a fundamental concept in psychophysics.

Stimulus

Anything in the environment that can trigger a physical or behavioral change in an organism.

Nativism

The theory that certain skills or abilities are "native" or hard-wired into the brain at birth.

Empiricism

A philosophical stance positing that knowledge comes primarily from sensory experience.