If a Contingent Liability of a Subsidiary Is Recognised in a Business

question 23

Multiple Choice

If a contingent liability of a subsidiary is recognised in a business combination,on consolidation the group will record:

• A) a deferred tax liability.
• B) a deferred tax asset.
• C) a reduction in goodwill.
• D) none of the above.

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Definitions:

Aggregate Demand

The total demand for all goods and services within an economy at a given overall price level and within a given time period.

Money Supply

The total fund of money available in an economy at a fixed point in time.

Interest Rate

The cost of borrowing money, expressed as a percentage of the amount borrowed, paid by the borrower to the lender for the use of their funds.

Aggregate Demand

The comprehensive demand for every type of good and service within an economy, identified at a given price level and time period.