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

---

Definitions:

Labor Economics

A branch of economics that studies the dynamics of the markets for wage labor, including demand and supply, wage determination, and labor productivity.

Normative Economics

A branch of economics that focuses on what the economy should be like or what particular policy actions should be recommended to achieve a desirable goal.

Formal Statement

A formal statement typically refers to an official, explicitly articulated declaration of facts, intentions, or principles.

Empirical Measure

A method or metric that is based on observation or experience rather than theory or pure logic.