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:

Volunteer Contributions

Unpaid efforts or services provided by individuals willingly to benefit others or a community.

Biannually

Occurring twice a year; also known as semiannual.

Culturally Diverse

Pertaining to or characterized by the inclusion of people from a variety of cultural, ethnic, and racial backgrounds.

Hispanics/Latinos

A diverse group of people in the United States with cultural, linguistic, and historical ties to Spain and Latin American countries.