课堂练习题(第十四章).docVIP

Exercise（Chapter 14） 1. Is the amortization of goodwill permitted according to U.S. GAPP International Accounting Standards IAS A. Yes Yes B. Yes No C. No Yes D. No No 2. Which of the following statements regarding the differences between the purchase method of accounting for mergers and acquisitions and the pooling of interests method is least accurate? A. The purchase method recognizes one firm as being acquired by another, while the pooling of interests method views both participants as equals. B. The operating results of both companies prior to the acquisition are restated under the purchase method, but are not restated under the pooling of interests method C. The purchase method recognizes any excess purchase price on the balance sheet as an intangible asset, while the pooling of interest method does not acknowledge market value and combines the two companies using accounting book values. D. The underlying cash flows and economics of a merger or acquisition are same whether the purchase or the pooling of interests method is utilized 3. Under which accounting method, purchase or pooling, is net profit margin and return on equity likely to be lower Net profit margin Return on equity A. Purchase Purchase B. Purchase Pooling C. Pooling Purchase D. Pooling Pooling 4. Which of the following statements about the pooling and purchase methods is most accurate? A. In the purchase method, the statements is structured so that all the liabilities and assets of both companies are combined together while the consolidated equity equals the parent’s equity. B. In the pooling method, the balance sheet and income statements are added together after adjusting the target firm’s statements to reflect the fair values of the acquired firm. C. In the purchase method, prior period statements are restated to reflect the results of the acquired operating activities... D. In the purchase method, the balance sheet and income statements of the acquirer is restated while