Which of the Following Statements Regarding the Pooling of Interests

question 15

Multiple Choice

Which of the following statements regarding the Pooling of Interests Method is false?

• A)It will result in a higher net income being shown when the Fair Market Values of a company's assets exceeds its book values.
• B)It is currently the required method for accounting for Business Combinations in Canada when an acquirer cannot be identified)
• C)It is more widely used in the United States than in Canada)
• D)The Purchase Method was created under the assumption that all parties involved in a Business Combination would essentially be considered equal.