With Which of the Following Methods of Accounting for a Business

question 29

Multiple Choice

With which of the following methods of accounting for a business combination does a minority interest category not arise?

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

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Definitions:

Volatility

The degree of variation of a trading price series over time, usually measured by the standard deviation of returns.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean.

Diversification

An investment strategy that reduces risk by allocating investments among various financial instruments, industries, or other categories.

Negatively Correlated

A relationship between two variables in which one variable increases as the other decreases.