C. In a reverse acquisition, the entity that issues securities is identified as the (LIST A) while the entity whose equity interests are acquired is the (LIST B)

Select one:

a. Accounting acquiree; Accounting acquirer

b. Accounting acquirer; Accounting acquiree

c. Legal acquirer; legal acquiree

d. Legal acquiree; legal acquirer D. In a reverse acquisition, the acquisition-date fair value of the consideration transferred by the accounting acquirer shall be measured

Select one:

a. As an amount based on the number of equity interests the legal subsidiary (accounting acquirer) would have had to issue to give the owners of then legal parent (accounting acquiree) the same percentage equity interest in the combined entity that results from the reverse acquisition.

b. In a reverse fashion, that is by multiplying shares by the fair value per share, rather than the fair value per share by the shares.

c. At cost rather than at fair value.

d. In a revers fashion, that us by squeezing the consideration transferred starting with goodwill and fair value of net identifiable assets acquired.

E. The consolidated financial statements prepared after the reverse acquisition

Select one:

a. Are presented on a reverse fashion starting with the notes and lastly the balance sheet

b. All of these

c. Are presented n a revenue fashion, for example, equity is presented first and lastly assets.

d. are issued under the name of the legal parent (accounting acquiree) but described in the notes as a continuation of the financial statements of the legal subsidiary (accounting acquirer).

F. In a business combination, goodwill may be the excess of the fair value of the consideration transferred over the

Select one:

a. Fair value of assets acquired less the liabilities assumed

b. Book value of assets acquired less the liabilities assumed

c. Net book value of assets acquired

d. Fair value of assets acquired

G. Good will may arise and be recognized in the accounting records when

Select one:

a. A firm reports above normal earnings for five or more consecutive years

b. It is acquired through the purchase of another business entity

c. It is purchased from another company

d. It can be established that a definite benefit or advantage, has resulted to a firm from some item such as a good name, capable staff or reputation