Deck26

Question 1

What is Accretion Expense?

Answer 1

Growth in Asset Retirement Obligation(ARO)

Question 2

Accretion Expense =

Answer 2

ARO x Credit Adjusted Interest Free Interest Rate

Question 3

A Business Combination can occur when a company (a)acquires controlling interest (securities) (b) acquires assets (c)both

Answer 3

(c) both

Question 4

What is the quickest was to figure Book Value of a Company?

Answer 4

Add up the equity accounts (this is quicker than adding Total Assets and subtracting Total Liabilities)

Question 5

How long does a Business Combination have to adjust it books?

Answer 5

1 year

Question 6

For an Acquired Business in a Business Combination, a Business may be constituted by (a)Group of Assets (b) Net Group of Assets (c) A separate Legal Entity (d) All of these

Answer 6

(d) All of these

Question 7

The acquisition date may be_________ the closing date. (a) before (b) during (c) after (d) any of these

Answer 7

(d) any of these

Question 8

The equity holders in a Variable Interest Entity ____________ control the entity. (a)do (b) do not

Answer 8

(b) do not