Question

When considering an acquisition, which of the following is NOT a method by which one company may gain control of another comp
The GAAP defines the accounting concept of a business combination as a transaction or other event in which an acquirer obtain
Which method of accounting will generally be used when one company purchases between 20% to 50% of the outstanding stock of a
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Answer #1

Qus 1 : When considering an acquisition......

Ans: Purchase of 25% of outstanding voting stock of the acquired company.

Because all other option are the ways/method to gain control over other company.

Qus. 2: The GAAP defines......

Ans: Ture

GAAP defines the accounting concept of business combinatiom related to transaction and other event that how acquirer can take control over one or more Company.

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