Q18. What are the principal accounting methods that have been used for mergers and acquisitions? A) Purchase, equity, and consolidation. B) Purchase and pooling of interests. C) Cost, equity, and consolidation.
Q19. The factors that determine the required accounting methods for intercorporate investments under both U.S. GAAP and IAS rules are: A) degree of influence and whether the acquiring firm has the intent and ability to hold the securities to maturity. B) percentage of ownership and/or degree of influence. C) purchase cost compared with book value of the interest purchased.
Q20. Which of the following statements concerning the selection of accounting methods is most accurate? A) An acquisition that is accounted for as a purchase will ordinarily result in lower profit margins for the combined firm than would have been the case under pooling. B) A passive intercorporate investment with no significant influence that results in ownership of less than 20% must be accounted for under the equity method. C) An acquisition that is accounted for a cost transaction will ordinarily result in lower profit margins for the combined firm than would have been the case under pooling.
Q21. Concerning the accounting for mergers and acquisitions, which of the following statements is most accurate? The pooling method is no longer allowed under: A) U.S. GAAP rules, but is still allowed under IAS rules; ROA and ROE measures are generally less favorable under the purchase method relative to the pooling method. B) either U.S. GAAP or IAS rules; return on assets (ROA) and return on equity (ROE) measures are generally less favorable under the purchase method relative to the pooling method. C) either U.S. GAAP or IAS rules; ROA and ROE measures are generally more favorable under the purchase method relative to the pooling method.
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发表于 2009-1-7 15:37
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