Group Chp2 2-4, 6-12 - 2. LO2 Which of the following is the...

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2. LO2 Which of the following is the best theoretical justification for consolidated financial statements? a. In form the companies are one entity; in substance they are separate. b. In form the companies are separate; in substance they are one entity. Pg41 c. In form and substance the companies are one entity. d. In form and substance the companies are separate. 3. LO3 What is a statutory merger? a. A merger approved by the Securities and Exchange Commission. b. An acquisition involving the purchase of both stock and assets. c. A takeover completed within one year of the initial tender offer. d. A business combination in which only one company continues to exist as a legal entity. Pg42 4. LO8 What is the appropriate accounting treatment for the value assigned to in-process research and development acquired in a business combination? a. Expense upon acquisition. b. Capitalize as an asset. Pg56,57 c. Expense if there is no alternative use for the assets used in the research and development and technological feasibility has yet to be reached. d. Expense until future economic benefits become certain and then capitalize as an asset. 6. LO4 When does gain recognition accompany a business combination? a.
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This note was uploaded on 02/20/2012 for the course ACC 3101 taught by Professor Tom during the Spring '11 term at American University in Bulgaria.

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Group Chp2 2-4, 6-12 - 2. LO2 Which of the following is the...

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