Which of the Following Statements Is True

question 30

Multiple Choice

Which of the following statements is true?

• A)Pooling of interests is acceptable provided the twelve criteria required by the APB are met.
• B)Pooling of interests is no longer acceptable for new combinations as stated in SFAS No.141,"Business Combinations."
• C)Companies that used pooling of interests method in the past must make a retrospective accounting change in accounting principle.
• D)Companies that used pooling of interests method in the past must make a cumulative effect accounting change in accounting principle.
• E)Companies that used pooling of interests in the past must make a prospective change in accounting principle.

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Definitions:

Labor Market

The marketplace in which individuals offer their labor for employment and employers seek to hire labor to fill available positions.

Resource Market

The market where resources or inputs such as labor, capital, and raw materials are bought and sold.

Rational Decision Maker

An individual or entity that makes choices that maximize benefits while minimizing costs, based on available information and logical analysis.

Shipping Fee

A charge applied for the transportation of goods from one location to another by sea, air, or land logistics.