_____ Analysis Is an Important Tool That Executives Can Rely

question 31

Multiple Choice

_____ analysis is an important tool that executives can rely upon to organize factors within the general environment and identify how these factors influence industries and the firms within them.

• A) PESTEL
• B) SWOT
• C) Porter's
• D) BCG matrix
• E) Five forces

Identify and explain the accounting treatments for contingent consideration in acquisitions.

Assess the financial implications of a bargain purchase on acquisition accounting.

Understand the principles and applications of the equity method of accounting.

Identify the circumstances under which the equity method of accounting is appropriate.

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Definitions:

Financial Activities

Transactions related to managing the company's finances, including raising capital, repaying investors, and dividends distribution.

Operating Activities

Day-to-day actions that are involved in running a business and generating income, including producing and selling goods or providing services.

Investing Activities

Financial transactions related to the acquisition or disposal of long-term assets and other investments not included in cash equivalents.

Effective Interest Method

A technique of calculating the amortized cost of a bond and the interest expense over the bond's life, taking into account any premiums or discounts.