On 1 July 20X6, P Limited Acquired All the Issued $\bullet$

question 19

Multiple Choice

On 1 July 20X6, P Limited acquired all the issued shares of S Limited for $50 000 when the equity of S Limited consisted of:
$\bullet$ Share Capital $35 000
$\bullet$ Retained Earnings $15 000
The pre-acquisition entry at 1 July 20X6 is:

• A)\(\begin{array}{lll}
• \text { Shares in S Limited } & \mathrm{Dr} & 50,000 \\
• \text { Opening Retained earnings } & \mathrm{Cr} &15,000 \\
• \text { Share capital } & \mathrm{Cr} &35,000
• \end{array}\)
• B)\(\begin{array}{lll}
• \text { Opening Retained earnings } & \mathrm{Dr} & 15,000 \\
• \text { Share capital } & \mathrm{Dr} & 35,000 \\
• \text { Shares in S Limited } & \mathrm{Cr} &50,000
• \end{array}\)
• C)\(\begin{array}{lll}
• \text { Opening Retained earnings } & \mathrm{Dr} & 35,000 \\
• \text { Share capital } & \mathrm{Dr} & 15,000 \\
• \text { Shares in S Limited } & \mathrm{Cr} &50,000
• \end{array}\)
• D)\(\begin{array}{lll}
• \text { Goodwill } & \mathrm{Dr} & 15,000 \\
• \text { Share capital } & \mathrm{Dr} & 35,000 \\
• \text { Shares in S Limited } & \mathrm{Cr} &50,000
• \end{array}\)

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Definitions:

Quantitative Research

A research method focusing on obtaining data through measurable and statistical techniques to analyze and interpret patterns.

Hofstede Classification

A framework for cross-cultural communication, developed by Geert Hofstede, that analyzes cultural differences through dimensions such as individualism vs. collectivism and power distance.

Assertiveness Cultural

Refers to how cultural norms and values influence the level and acceptance of assertive behavior in interpersonal and professional interactions.

Confrontational

Characterized by or inclined towards direct opposition or conflict.