Consolidation Adjustment Journal Entry Quiz

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Questions and Answers

What information should be included about the combining entities in a business combination?

  • Their names and descriptions (correct)
  • Their addresses and contact details
  • Their future expansion plans
  • Their revenue and profit figures

Which detail should be disclosed about the acquisition date in a business combination?

  • The day of the week when the acquisition took place
  • The weather on the day of acquisition
  • Just the acquisition date itself (correct)
  • The historical significance of the date

What should be included in the information regarding the percentage of voting equity instruments acquired in a business combination?

  • The percentage change in the instruments' value over time
  • The voting history of the instruments
  • The percentage of ownership acquired (correct)
  • The individual voting preferences of each instrument

What type of details should be provided about the cost of the combination in a business combination?

<p>Details of the cost and its components (B)</p> Signup and view all the answers

What should be disclosed regarding the acquiree's net assets at the acquisition date in a business combination?

<p>The amounts recognized for each class of net assets at acquisition date (B)</p> Signup and view all the answers

What is one crucial piece of information that should be described about the factors contributing to the recognition of goodwill in a business combination?

<p>The description of the factors contributing to goodwill recognition (A)</p> Signup and view all the answers

In a business combination, what should be disclosed about the amount of acquiree’s profit or loss since the acquisition date included in the acquirer’s profit or loss for the period?

<p>The amount of profit or loss since the acquisition date included in the acquirer’s profit or loss for the period (C)</p> Signup and view all the answers

Flashcards

Combining entity names

The names of the companies involved in the business combination.

Acquisition date detail

Just the specific date when the acquisition happened, no further details needed.

Voting equity percentage

The percentage of ownership acquired by voting equity instruments.

Combination cost details

The cost of the combination and all its parts should be described in detail.

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Acquirer’s net asset amounts

The amounts recognized for each class of net assets at the acquisition date of the acquiree.

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Goodwill recognition factors

A description of the factors causing goodwill to be recognized in a business combination.

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Profit/loss since acquisition

The amount of the acquiree's profit or loss since the acquisition date, as reported in the acquirer’s results.

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