The purchase accounting method for mergers requires that:
A) the excess of the purchase price over the fair market value of the target firm be recorded as a one-time expense on the income statement of the acquiring firm.
B) goodwill be amortized on a yearly basis.
C) the equity of the acquiring firm be reduced by the excess of the purchase price over the fair market value of the target firm.
D) the assets of the acquired firm be recorded at their fair market value on the balance sheet of the acquiring firm.
E) the excess amount paid for the target firm be recorded as a tangible asset on the books of the acquiring firm.
D) the assets of the acquired firm be recorded at their fair market value on the balance sheet of the acquiring firm.
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One of the factors in the external environment that has become more evident in the past decade is the:
a. decrease in the importance of language in foreign trade. b. shortage of natural resources. c. abundance of export brokers for major industries. d. decrease in the working-age population of developing countries.
Global leadership behaviors include all of these except ______.
A. self-directive leadership B. team-oriented leadership C. participative leadership D. autonomous leadership
Jane and Joan decide to open a plumbing business. Both contribute money to the business, but
because Jane has expertise in plumbing, she makes all the management decisions. Joan will not participate in any of the day-to-day operations. Jane and Joan will split net income equally. This enterprise is: A) A partnership. B) Not a partnership because they do not share management responsibilities. C) Not a partnership because they do not co-own the business. D) Not a partnership because they are not carrying on a trade or business. E) Not a partnership because there is no association of two or more people.
Because managerial accounting reports rarely solve decision problems, what function does a managerial accountant use to assist managers in understanding issues contained within the information produced?
A. Theoretical capacity function. B. Learning and growth function. C. Customer function. D. Internal business solution function. E. Attention directing function.