Which of the Following Is not Correct with Respect

question 103

Multiple Choice

Which of the following is not correct with respect to mergers under the rules established by FASB Statement No. 164, Not-for-Profit Entities: Mergers and Acquisitions?

• A) If the combination qualifies as a merger, it will be accounted for using the carryover method.
• B) Goodwill is recognized on long term assets only
• C) Assets and liabilities are transferred from both existing entities to the new entity at book value.
• D) The entity resulting from the merger is a new reporting entity, with no activity before the date of the merger.

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Definitions:

Quadriceps Femoris

A large muscle on the anterior surface of the thigh that is composed of four separate muscles.

Tibialis Anterior

A muscle of the leg.

Vastus Lateralis

A muscle of the thigh that is part of the quadriceps, responsible for extending the leg at the knee.

Muscle Recruitment

The process of activating additional muscle fibers to increase the force of muscular contraction in response to demand.