With Which of the Following Methods of Accounting for a Business

question 29

Multiple Choice

With which of the following methods of accounting for a business combination does a minority interest category not arise?

• A)Pooling of interests
• B)The purchase method
• C)The new entity approach
• D)Proportionate consolidation

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Definitions:

Inflation

An increase in the overall level of prices in the economy

Output

The amount of goods or services produced by a firm, industry, or economy over a given period.

Sacrifice Ratio

A measure of the economic cost of reducing inflation, calculated as the percentage of annual output lost per one percentage point reduction in inflation.

Inflation

A general increase in prices and fall in the purchasing value of money.