When an Acquisition of Another Company Occurs, FASB Requires Disclosing

question 21

Multiple Choice

When an acquisition of another company occurs, FASB requires disclosing all of the following except:​

• A)​amounts recorded for each major class of assets and liabilities.
• B)​information concerning contingent consideration including a description of the arrangements and the range of outcomes.
• C)​results of operations for the current period if both companies had remained separate.
• D)​a qualitative description of factors that make up the goodwill recognized.

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Definitions:

Fundamental Attribution Error

The tendency to overestimate the influence of personality and underestimate the influence of situational factors when evaluating others' behavior.

Cultural Differences

The variations in social norms, values, practices, and expressions among different societies and cultural groups.

Internal Attributions

The method of attributing behavioral causes to individual characteristics, qualities, capabilities, and emotions.

Personality Factors

Distinct traits or characteristics that make up an individual's personality, often studied in psychology to understand human behavior.