Professional Documents
Culture Documents
Toa 34B-1 PDF
Toa 34B-1 PDF
-\\ 2. It is the power to govern the financial and operating policies of an entity or business so as to obtain
benefits from its activities.
a. Control c. Hostile takeover
b. Significantinfluence d. Corporate spin-off
I 3. In a business cornbination, the ACQUIRER is the party that
:,t
\/ a. Sells the acquired entity c. Receives the acquisition consideration
b. Obtains control of the other entities d. Concedes control over the acquired entities
\)'/ +. In aa.business combinarion, the ACeUIREE is the party that
Pays the acquisition consideration c. Obtains control of the net assets acquired
. b. Finances the business combination d. Gives up control over the net assets acquired
,'' 5. Which of these relationships would describe a STATUTORY MERGER?
.'"1tr
lJ.r${ a. Fermy Company + Gorgy Company = Ferrny Company
t . ,..r -t _,/ b. Marcy Company + Bona Company = Insane Company
E
:- c. Connie Cornpany + Tonie Company = Zweet Couple Company
' ' r: .'.' '',d. Papa Company + Son Company = Papa Company and Son Company
(i 6. HORIZONTAL business cornbinations occur when an \pt-l'o/ A !,'
entity purchases which of the followinn,
a. A supplier c. A competito r
b. A customer d. A.of?ily,q?P-ryjXg to a different industry
7 . An entity shall account for each busrness combination by applying the
r . a. Equity method c. Proportionate consolidation
\ D.!.',',-,1:t b. Acquisition method d. Pooling of interest method
'.1' '
tt.
i\ B. The ACQUISITION METHOD used in business combinations involves all of the following stepsr
excepr
\t a. Identifying the acquirer
b. Determining the acqr-risition date (also known as'closing date')
c. Recognizing and measuring identifiable assets acquired and liabilities assumed
d. Recognizing and' measuring goodwill and€CIE+iziqgq ov.er.estirpatqd upeful
Jife.
i:r :'i
E rhe ACeurSrrroN DArE for a business combination
a. The business combination is announced to the public
*n"tl*" *tlnJn"l ..'
12. The acquirer shall measure the identifiable assets acquired and liabilities assumed at their acquisition-
date
a. Faii: values c. Depreciable amounts
b. Carrying amounts d. Recoverable amounts
Pagelof3pages