A Contingent Liability Recognised in a Business Combination Will Be

question 30

Multiple Choice

A contingent liability recognised in a business combination will be recorded:

• A) in the subsidiary's accounts.
• B) in the group accounts.
• C) either A or B.
• D) none of the above.

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Definitions:

Firms

Business entities that produce goods or services, usually with the aim of making a profit.

Hired Workers

Individuals employed by others or companies to perform specific tasks or services in exchange for wages or salary.

Economic Resources

Assets or inputs, including land, labor, capital, and entrepreneurship, that are used in the production of goods and services.

Costs

Expenses incurred in the production of goods or services, including materials, labor, and overhead expenses.