2 points mcq general accounting In businessgoodwill is:combinations under common control,a) Calculated as in regular business combinationsb) Amortized immediatelyc) Always recognized at fair valued) Not recognized, difference goes to equity

Explanation of Business Combinations Under Common Control: Business combinations under common…

Answered: In business goodwill is: combinations…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 27MC: What is the impact on the accounting equation when a sale occurs? A. both sides increase B. both...

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Direct cost incurred in a business combination are A. CapitalizedB. ExpensedC. Capitalized, except for costs of issuing equity and debt instrumentsD. Expensed, except for costs of issuing equity and debt instruments
Please do not give solution in image format ?
Explain thoroughly why it is the answer.
What is the impact on the accounting equation when a sale occurs? A. both sides increase B. both sides decrease C. only the Asset side changes D. neither side changes
What is the impact on the accounting equation when stock is issued, in exchange for assets? A. both sides increase B. both sides decrease C. only the Asset side changes D. neither side changes
On a balance sheet shareholder equity must always equal the difference between assets and liabilities. true or false
Which of the following accounting treatments for costs related to business combination is incorrect? Group of answer choices The costs related to issuance of financial liability at fair value through profit or loss shall be recognized as expense while those related to issuance of financial liability at amortized cost shall be recognized as deduction from the book value of financial liability or treated as discount on financial liability to be amortized using effective interest method. The costs related to issuance of stock or equity securities shall be deducted/debited from any share premium from the issue and any excess is charged to “share issuance cost” reported as contract-equity account against either (1) share premium from other share issuances or (2) retained earnings Acquisition related costs such as finder’s fees; advisory, legal, accounting, valuation and other professional and consulting fees; and general administrative costs, including the costs of maintain an…
In applying the equity method of accounting for an Equity Investment, profit on intercompany sales of assets are eliminated. Why?
True or false?
Which of the following terms is used when assuming a business will continue to operate in theforeseeable future?A. separate entity conceptB. monetary measurement conceptC. going concern assumptionD. time period assumption
When an investor uses the cost method to account for investments in subsidiary, cash dividends received by the investor from the investee should normally be recorded as: A. Ignored. B. Dividend income. C. An addition to the investor’s share of the investee’s profit. D. A deduction from the investment account E. A deduction from the investor’s share of the investee’s profit.
Which statement is incorrect regarding classification of financial assets? a. An entity can classify financial assets that meet the amortized cost criteria as at FVPL if doing so eliminates or reduces an accounting mismatch. B. In order to be classified at fair value through OCI, a debt instrument needs to have either simple principal and interest cash flows or be held in a business model in which both holding and selling financial assets are integral to meeting management’s objectives. C. An investment in equity instrument may not be classified as financial asset subsequently measured at amortized cost. D. Reclassifications of financial assets are only permitted on the change of an entity’s business model and are expected to occur only infrequently.

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In business goodwill is: combinations under common control, a) Calculated as in regular business combinations b) Amortized immediately c) Always recognized at fair value d) Not recognized, difference goes to equity