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Temka [501]
4 years ago
9

One company acquires another company in a combination accounted for under the acquisition method. "The acquiring company decides

to apply the initial value method" in accounting for the combination. What is one reason the acquiring company might have made this decision?
(A) It is relatively easy to apply.
(B) It is the only internal reporting method allowed by generally accepted accounting principles.
(C) When the initial method is used, no worksheet entries are required in the consolidation process.
(D) It is the only method allowed by the SEC
(E) Operating results on the parent's financial records reflect consolidated totals.
Business
1 answer:
Alik [6]4 years ago
3 0

Answer: Option E: Operating results on the parent's financial records reflect consolidated totals.

Explanation: Operating results on the parent's financial records reflect consolidated totals is the reason the acquiring company might have made this decision

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<h3>What is microeconomics?</h3>

Microeconomics is the study of decisions made by people and businesses regarding the allocation of resources, and prices at which they trade goods and services.

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Learn more about microeconomics here : brainly.com/question/8648375

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1) The Pet Company has recently discovered a type of rock which, when crushed, is extremely absorbent. It is expected that the f
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3 years ago
Karl opens a savings account with $2500. He deposits $1500 every year into the account that has a 0.75% interest rate, compounde
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Answer:

Total FV= $29,335.25

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<u>First, we need to calculate the future value of the initial investment ($2,500) using the following formula:</u>

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