Which of the following methods of accounting for Business Combinations is/are consistent with the Historical Cost Principle?
A)The Pooling of Interests Method
B)The Purchase Method)
C)The New Entity Method)
D)The Acquisition Method)

Question

Quizplus · Accepted Answer

The Purchase Method is consistent with the Historical Cost Principle because it records the assets and liabilities of the acquired company at their fair value as of the acquisition date.

Which of the Following Methods of Accounting for Business Combinations