Assuming That a Acquired a Controlling Interest in B Through

question 13

Multiple Choice

Assuming that A acquired a controlling interest in B through numerous small acquisitions, what would be appropriate accounting with respect to these acquisitions?

• A) An acquisition differential must be computed following each purchase.
• B) The equity method must be adopted retroactively once 20% ownership is obtained.
• C) The purchases should all be grouped together and treated as a single block purchase.
• D) The cost method should be used until a controlling interest is acquired.

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Definitions:

Internal Locus of Control

The belief that one is in control of their life and outcomes, attributing success and failure to one's own actions rather than external forces.

Ideal Self

The conception of oneself as one wishes to be or aspires to be, often involving goals, values, and desired traits.

Self-Image

An individual's perception of themselves, shaped by experiences, beliefs, and feedback from others.

Compensating

Making up for a deficiency or lack in one area by excelling or emphasizing another.