Under AASB 3 Business Combinations,a Gain on Bargain Purchase Arises

question 24

Multiple Choice

Under AASB 3 Business Combinations,a gain on bargain purchase arises when the acquirer's interest in the net fair value of the acquiree's identifiable net assets and contingent liabilities is:

• A)less than the carrying amount of the net assets acquired
• B)less than the consideration transferred
• C)greater than the consideration transferred
• D)more than the book values of the identifiable assets acquired.

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Definitions:

Experimental Research

A methodology in scientific studies where variables are manipulated and controlled to determine their effects on other variables.

Correlational Research

A research method that examines the relationship between two or more variables to determine if there is an association between them.

Naturalistic Observation

A descriptive technique of observing and recording behavior in naturally occurring situations without trying to manipulate and control the situation.

Internal Locus of Control

A belief system wherein individuals feel that they have control over the outcomes of events in their lives, as opposed to external forces.