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:

Depressed Mood

A state of persistent sadness, a key symptom of depression that can affect a person's thoughts, behavior, feelings, and sense of well-being.

Neurotransmitter

Chemical substances in the nervous system that transmit signals across a synapse from one neuron to another.

Antagonist

A substance that blocks or inhibits the effects of a neurotransmitter or hormone.

Opiate

A group of drugs derived from opium, used for pain relief, but also associated with addiction and dependence.