Which of the Following Statements About the Pooling of Interests

question 52

Multiple Choice

Which of the following statements about the Pooling of Interests Method is incorrect?

• A)It ignores the fair market values of any shares issued in a business combination.
• B)It is less complete than the Purchase Method due to the omission of any acquired assets and liabilities that were not recorded prior to the acquisition
• C)Cash flows will always be significantly higher under the Pooling of Interests Method than under the Purchase Method)
• D)Cash can never be exchanged under a Pooling of Interests business combination.

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