Which of the Following Statements Is Correct

question 29

Multiple Choice

Which of the following statements is correct?

• A)Under the purchase method,the company's net assets are recorded at the price paid for these assets on the date of acquisition.
• B)Under the acquisition method,the company's net assets are recorded at the price paid for these assets on the date of acquisition.
• C)As of January 1^st,2008,the Purchase method must be used to account for business combinations where an acquirer can be identified)
• D)The acquisition method is consistent with the historical cost principle while the purchase method is not.

---

Definitions:

Microprocessor

A small, integrated circuit that performs the functions of a central processing unit of a computer.

CPUs

The central processing units of a computer, which are the primary components responsible for executing instructions and processing data.

Microchip

A small semiconductor device containing integrated circuits, used in virtually all electronic equipment.

Direct Access Storage Device (DASD)

A type of storage device that allows data to be read and written directly in a random access manner, without having to sequentially access other data first.