In an asset acquisition:
A)A consolidation must be prepared whenever financial statements are issued.
B)The acquiring company deals only with existing shareholders, not the company itself.
C)The assets and liabilities are recorded by the acquiring company at their book values.
D)Statements for the single combined entity are produced automatically and no consolidation process is needed.

Question

In an asset acquisition:
A)​A consolidation must be prepared whenever financial statements are issued.
B)​The acquiring company deals only with existing shareholders, not the company itself.
C)​The assets and liabilities are recorded by the acquiring company at their book values.
D)​Statements for the single combined entity are produced automatically and no consolidation process is needed.

Quizplus · Accepted Answer

The Answer of In an asset acquisition:
A)​A consolidation must be prepared whenever financial statements are issued.
B)​The acquiring company deals only with existing shareholders, not the company itself.
C)​The assets and liabilities are recorded by the acquiring company at their book values.
D)​Statements for the single combined entity are produced automatically and no consolidation process is needed.

In an Asset Acquisition