There Are a Number of Possible Approaches to Reporting Consolidated

question 10

Multiple Choice

There are a number of possible approaches to reporting consolidated financial statements after one company acquires control over another. Which of the following methods reports the consolidated amounts by adding together the carrying values of the assets and liabilities of the parent and the subsidiary?

• A)Pooling-of-interests method
• B)Acquisition method
• C)Purchase method
• D)New entity method

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Definitions:

Acid Solution

A aqueous solution containing more hydrogen ions (H+) than hydroxide ions (OH-), typically having a pH less than 7.

Quarts

A unit of liquid measure equal to two pints or one fourth of a gallon, used especially in the US.

Equivalent

Having the same value, function, or meaning.

Average Speeds

The total distance traveled divided by the total time taken; often used in motion problems.