In Reference to the FASB Disclosure Requirements About a Business

question 27

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)All of the above are correct.

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing to sell.

Price Volatile

Price volatility refers to the rate at which the price of a security or commodity moves up or down.

Supply

The total amount of a product or service that is available to consumers.

Demand

The consumer's desire to purchase goods and services and willingness to pay a price for a specific good or service.