Strayer ACC 401 Winter 2014 Ch 1 MCQ Which of the following situations best describes a business combination..

Question 1

Which of the following situations
best describes a business combination to be accounted for as a statutory
merger?

Question 2

Which of the following statements
would not be a valid or logical reason for entering into a business
combination?

Question 3

The impairment standard as it
relates to goodwill is an example of a

Question 4

Under the economic unit concept,
noncontrolling interest in net assets is treated as

Question 5

Which of the following statements
is correct?

Question 6

When following the parent company
concept in the preparation of consolidated financial statements, noncontrolling
interest in combined income is considered a(n)

Question 7

The defense tactic that involves
purchasing shares held by the would-be acquiring company at a price substantially
in excess of their fair value is called

Question 8

A merger between a supplier and a
customer is a(n)
Question 9

When a new corporation is formed
to acquire two or more other corporations and the acquired corporations cease
to exist as separate legal entities, the result is a statutory

Question 10

Many of FASB’s recent
pronouncements indicate a shift away from historical cost accounting toward

Question 11

Estimated goodwill is determined
by computing the present value of the

Question 12

According to the economic unit
concept, the primary purpose of consolidated financial statements is to provide
information that is relevant to

Question 13

The view that only the parent
company’s share of the unrealized intercompany profit recognized by the selling
affiliate that remains in assets should be eliminated in the preparation of
consolidated financial statements is consistent with the

Question 14
The
view that consolidated financial statements represent those of a single
economic entity with several classes of stockholder interest is consistent with
the

Question 15

When following the economic unit
concept in the preparation of consolidated financial statements, the basis for
valuing the noncontrolling interest in net assets is the