Which of the Following Methods of Accounting for a Business

question 6

Multiple Choice

Which of the following methods of accounting for a business combination assumes that the parent company purchases the subsidiary and must account for the acquisition as it would for the acquisition of any asset?

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

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Definitions:

Anxiety

An emotion of concern, anxiety, or discomfort, often regarding a forthcoming event or an outcome that is not guaranteed.

Coping

The process of managing external and internal demands that are perceived as taxing or exceeding the resources of the person.

Experience

The knowledge or skill acquired through involvement in or exposure to events, activities, or through specific training over a period of time.

Reinforcement

In the context of behavior, it refers to the process of encouraging or establishing a pattern of behavior by offering rewards or consequences.