Which One of the Following Is a Characteristic of a Business

question 76

Multiple Choice

Which one of the following is a characteristic of a business combination that is accounted for as an acquisition?

• A) Fair value only for items received by the acquirer can enter into the determination of the acquirer's accounting valuation of the acquired company.
• B) Fair value only for the consideration transferred by the acquirer can enter into the determination of the acquirer's accounting valuation of the acquired company.
• C) Fair value for the consideration transferred by the acquirer as well as the fair value of items received by the acquirer can enter into the determination of the acquirer's accounting valuation of the acquired company.
• D) Fair value for only consideration transferred and identifiable assets received by the acquirer can enter into the determination of the acquirer's accounting valuation of the acquired company.
• E) Only fair value of identifiable assets received enters into the determination of the acquirer's accounting valuation of the acquired company.

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Definitions:

Optical Storage

A method of storing data on a disc using optical technology, such as CDs, DVDs, and Blu-ray discs.

Hard Drives

Data storage devices used in computers and other devices, employing magnetic storage to save and retrieve digital information.

Output Technologies

Technologies concerned with the presentation of data, including monitors, printers, and audio systems, designed to communicate information to the user.

Microprocessor

A computer processor contained on a single integrated circuit, performing the functions of a CPU in a computer system.