In Reference to the FASB Disclosure Requirements About a Business

question 7

Multiple Choice

In reference to the FASB disclosure requirements about a business combination in the period in which the combination occurs,which of the following is correct?

• A)Firms are not required to disclose the name of the acquired company.
• B)Firms are not required to disclose the business purpose for a combination.
• C)Firms are required to disclose the nature,terms and fair value of consideration transferred in a business combination.
• D)Firms are not required to disclose the details about step acquisitions.

Calculate the cash payback period for capital investment projects.

Determine the net present value and present value index of investment projects.

Compute the internal rate of return for investment proposals.

Understand the role of sensitivity and expected value analysis in managing the uncertainty in estimates.