In the ____ method for combining financial accounts in a merger, the total value paid or exchanged for the acquired company's assets is recorded on the acquiring company's books.
A) pooling of interests
B) goodwill consolidation
C) purchase
D) book value

Question

Quizplus · Accepted Answer

The purchase method is used for combining financial accounts in a merger where the acquiring company's books record the total value paid or exchanged for the acquired company's assets. This method is also known as the acquisition method.

In the ____ Method for Combining Financial Accounts in a Merger