On the Date of Acquisition,consolidated Shareholder Equity Is Equal To

question 5

Multiple Choice

On the date of acquisition,consolidated shareholder equity is equal to:

• A)the sum of the parent and subsidiary's shareholder equities.
• B)the sum of the parent's shareholder equity plus its pro rata share of the subsidiary's shareholder equity on the date of acquisition.
• C)the parent's shareholder equity.
• D)the subsidiary's shareholder equity.

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Definitions:

Goodwill

An intangible asset representing the value of a company's brand, customer relationships, and other non-physical assets.

Recovered

Refers to the process of regaining or securing an amount of money, property, or other resource that was previously lost or owed.

Profits

The financial gain obtained when the revenue generated from business activities exceeds the expenses, taxes, and costs involved in sustaining the activity.

Discounted Cash-flow Analysis

A financial model that estimates the value of an investment based on its expected future cash flows, discounted back to their present value.