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

---

Definitions:

Decimal Places

The count of numerals positioned to the right of the decimal point in a number, demonstrating its level of accuracy.

Number Field

An input field designed to accept only numerical data, often used in forms and databases.

One-to-many Relationship

In database design, a relationship where a single record in one table can be associated with multiple records in another table.

Common Field

A term used in databases and spreadsheets referring to a field (column) that is present in two or more database tables, used for linking them together.