Which of the Following Methods of Accounting for a Business

question 72

Multiple Choice

Which of the following methods of accounting for a business combination is based on the premise that no substantive transaction occurs between the companies involved?

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

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Definitions:

Fault

A fracture along which the adjacent rock surfaces are displaced parallel to the fracture.

Rock Layers

Horizontal strata of rocks, each layer typically representing a period of deposition in Earth's geological history.

Evolutionary Diagram

A block diagram, cross section, or map that shows the history of an area as a series of steps, proceeding from the earliest stages to the most recent one.

Geologic Diagrams

Visual representations of the Earth's surface and subsurface used to understand and interpret geological features, processes, and history.