Which of the Following Is Recommended as the Preferred Accounting

question 16

Multiple Choice

Which of the following is recommended as the preferred accounting treatment for excess on acquisition?

• A) Reduce proportionately the fair values of the non-monetary assets acquired until the excess is eliminated
• B) Reduce proportionately the fair values of the monetary assets acquired until the excess is eliminated
• C) Treat it as a deferred credit in the balance sheet and periodically allocate it as income
• D) Immediately recognise the excess on acquisition as income in the income statement

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Definitions:

Invisible Disabilities

Disabilities that are not immediately apparent to others, such as chronic illnesses, mental health disorders, and neurological conditions.

Designated Group

Specific categories of individuals identified for targeted initiatives or policies, often concerning diversity, equity, and inclusion efforts within organizations.

Global

Pertaining to or involving the entire world; embracing all aspects of international relations, culture, and economic development.

Local Control

Pertains to the degree of authority and decision-making power retained at a local or regional level, as opposed to being centralized.