Which of the Following Statements Is True

question 15

Multiple Choice

Which of the following statements is true?

• A) The pooling of interests for business combinations is an alternative to the acquisition method.
• B) The purchase method for business combinations is an alternative to the acquisition method.
• C) Neither the purchase method nor the pooling of interests method is allowed for new business combinations.
• D) Any previous business combination originally accounted for under purchase or pooling of interests accounting method will now be accounted for under the acquisition method of accounting for business combinations.
• E) Companies previously using the purchase or pooling of interests accounting method must report a change in accounting principle when consolidating those subsidiaries with new acquisition combinations.

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Definitions:

Negative Message

Communication that conveys a refusal, denial, or unfavorable information, often requiring careful wording to maintain goodwill.

Budget

An estimate of income and expenditure for a set period of time, often used to plan and control finances.

Dealing With Criticism

The ability to handle negative feedback constructively and use it as a tool for personal or professional growth.

Criticism

The expression of disapproval or the identification of faults, either constructively to encourage improvement or negatively.