According to SFAS No

question 52

Multiple Choice

According to SFAS No.141,the pooling of interest method for business combinations

• A)Is preferred to the purchase method.
• B)Is allowed for all new acquisitions.
• C)Is no longer allowed for business combinations after June 30,2001.
• D)Is no longer allowed for business combinations after December 31,2001.
• E)Is only allowed for large corporate mergers like Exxon and Mobil.

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Definitions:

Finished Goods Inventory

Inventory of finished goods awaiting sale but not yet purchased by consumers.

Raw Materials Inventory

The total cost of all parts and materials kept in stock by a company to be used in production.

Indirect Materials

Materials used in the production process but not directly traceable to a finished product, such as lubricants and cleaning supplies.

Advertising

The activity of promoting products or services to potential customers through various media channels.