Which of the Following Is an Example of Asset Recognised

question 14

Multiple Choice

Which of the following is an example of asset recognised by the acquirer as part of a business combination but that is not recognised by the acquiree?

• A) Inventory
• B) Land and buildings
• C) Prepaid insurance
• D) Internally generated brands

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Definitions:

Commercial Substance

A concept in accounting that refers to a transaction causing a significant change in the cash flows or financial status of a company.

Invoice Price

The price at which a seller lists a product for sale to a buyer, often detailed in a purchase invoice.