Statement 1: Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Statement 2: Consolidated financial statements shall be prepared using uniform accounting policies for like transactions and other events in similar circumstances. Statement 3: An expense item allocated by the home office to a branch is recorded by the branch by a debit to an expense ledger account and a credit cash-home office.
Statement 1: Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
Statement 2: Consolidated financial statements shall be prepared using uniform accounting policies for like transactions and other events in similar circumstances.
Statement 3: An expense item allocated by the home office to a branch is recorded by the branch by a debit to an expense ledger account and a credit cash-home office.
Statement 4: A debit to Home Office ledger account and a credit to the Trade Accounts Receivable account in the accounting records of a branch indicate that the home office collected accounts receivable of the branch.
Statement 5: Under the acquisition method, if the fair values of identifiable net assets exceed the value implied by the purchase price of the acquired company, the excess should be accounted for
Statement 6: With an acquisition, direct and indirect expenses are considered a par of the total cost of the acquired company.
Which statements are true?
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