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Under the Acquisition Method of Accounting for Business Combinations,which of the Following

Question 25

Multiple Choice

Under the acquisition method of accounting for business combinations,which of the following statements is true about consolidated financial statements?


A) The accounting emphasis in preparing consolidated financial statements is placed on the business combination being formed
B) The accounting emphasis in preparing consolidated financial statements is placed on the parent's investment
C) The objective of consolidated financial statements is to serve as a report to the stockholders of the parent company
D) The acquisition method is a hybrid of the purchase method and the pooling of interests method
E) The acquisition method is no longer allowed according to SFAS 141(R)

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