Question

Use of the acquisition method to account for a business combination requires the acquirer to identify assets acquired, liabilities assumed, and noncontrolling interest in the acquired business.

a.True
b.False

Answer 1

The acquisition method requires the acquirer to identify assets acquired, liabilities assumed, and noncontrolling interest in a business combination.

Step-by-step explanation:

The statement is true, the use of the acquisition method in accounting for a business combination does require the acquirer to identify assets acquired, liabilities assumed, and noncontrolling interest in the acquired business.

The acquisition method is a standard method used to account for business combinations in accordance with accounting principles. It ensures that the acquirer records the assets, liabilities, and noncontrolling interest at their fair values on the acquisition date.This method provides a comprehensive and accurate representation of the financial position and performance of the acquired business.