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Which statement is FALSE? a) Goodwill recorded as the result of an acquisition is defined as the purchase price less the book value of net

Which statement is FALSE?

a) Goodwill recorded as the result of an acquisition is defined as the purchase price less the book value of net assets

b) Under SFAS 141, accounting for acquisitions can no longer result in an increase in the consolidated entity's stockholders' equity.

c) One of the problems with purchase accounting is that there is often very little basis for comparability of financial statements before acquisition and after acquisition.

d) One of the problems with consolidated financial statements is that all intercompany transactions are not reported.

Which statement is FALSE?

a) Translation is the process under which local currency results are translated into the functional currency.

b) When using the current rate method to record foreign subsidiary results, gains and losses arising from the translation process are reported separately as a component of stockholders' equity and excluded from reported net income.

c) If the functional currency of a foreign-based subsidiary of an American company is the local currency, the current rate method of translation should be used for consolidation purposes.

d) Reported sales in US dollars of revenues from a foreign subsidiary will be the same regardless of the functional currency.

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