Application of the purchase method may be complicated by part of the purchase price being of a non-cash nature.

Name: Application of the purchase method may be complicated by part of the purchase price being of a non-cash nature.
Brand: Quizplus
Rating: 4.7 (42 reviews)

Question

Quizplus · Accepted Answer

This is true because if part of the purchase price is non-cash, such as through the issuance of stock or the assumption of liabilities, it can be difficult to determine the true value of the acquired company and allocate the purchase price appropriately.

Application of the Purchase Method May Be Complicated by Part