Test Bank for Advanced Accounting, 13th Edition

Preview (31 of 809 Pages)

100%

Purchase to unlock

Test Bank for Advanced Accounting, 13th Edition - Page 1 preview image

Loading page ...

1Advanced Accounting, 13e(Beams et al.)Chapter 1Business Combinations1.1Multiple Choice Questions1) Which of the following is NOT a reason for a company to expand through a combination, rather thanby building new facilities?A) A combination might provide cost advantages.B) A combination might provide fewer operating delays.C) A combination might provide easier access to intangible assets.D) A combination might provide an opportunity to invest in a company without having to takeresponsibility for its financial results.Answer: DObjective: LO1.1 Understand the economic motivations underlying business combinations.Difficulty: EasyAACSB: Analytical thinking2) A business merger differs from a business consolidation becauseA) a merger dissolves all but one of the prior entities, but a consolidation dissolves all of the prior entitiesand forms a new corporation.B) a consolidation dissolves all but one of the prior entities, but a merger dissolves all of the prior entities.C) a merger is created when two entities join, but a consolidation is created when more than two entitiesjoin.D) a consolidation is created when two entities join, but a merger is created when more than two entitiesjoin.Answer: AObjective: LO1.2 Learn about alternative forms of business combinations, from both the legal and accountingperspectives.Difficulty: EasyAACSB: Analytical thinking3) Following the accounting concept of a business combination, a business combination occurs when acompany acquires an equity interest in another entity and hasA) at least 20% ownership in the entity.B) more than 50% ownership in the entity.C) 100% ownership in the entity.D) control over the entity, irrespective of the percentage owned.Answer: DObjective: LO1.2 Learn about alternative forms of business combinations, from both the legal and accountingperspectives.Difficulty: EasyAACSB: Analytical thinking

Preview Mode

This document has 809 pages. Sign in to access the full document!

Report

Study Now!

Document Details

Related Documents

Solution Manual For Advanced Accounting, 11th Edition

Solution Manual For Advanced Accounting, 4th Edition

Class Notes For Advanced Accounting, 4th Edition

Accounting

Master Managerial Accounting Techniques

Controlling and Reporting of Real Assets

Team A Week 5 Problems

Accounting Audit Final Exam MCQs 2015

Sarbanes Oxley Act, GAAP and IFRS

Financial Reporting, Regulations, and Corporate Governance

Company

Explore

Study Tools