The income statement of the post-merger firm will be the same regardless of the accounting method used.

Name: The income statement of the post-merger firm will be the same regardless of the accounting method used.
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Question

Quizplus · Accepted Answer

The accounting method used can affect the way certain items are recorded on the income statement, such as depreciation and goodwill amortization. Therefore, the income statement of the post-merger firm may differ depending on the accounting method used.

The Income Statement of the Post-Merger Firm Will Be the Same