1)Explain in details the differences between Merger, Consolidation, and Acquisitions. Support your answer with one recent example from the real world for each type. (Always give detailed information that would support you answer.)(15 Marks)

Explanation

Name of the companies

Detailed information about this business combination

Merger

Consolidation

Acquisition

(Answers not provided in a tabular format will be disregarded and any examples given dated before the year 2001 will not be considered)

2) " If the accountant did not prepare the elimination entry of unrealized profit in inventories at the end of any year, this will affect the consolidated net income in that year and in all subsequent years". Discuss the accuracy of this statement and support your answer with a numerical example.(5 Marks)

3) What is the difference between upstream sale of inventory and a downstream sale? Why is it important to know the direction of sale when preparing the consolidated financial statements?

(5 Marks)