Which of the Following Is False Regarding Contingent Consideration in Business

question 92

Multiple Choice

Which of the following is false regarding contingent consideration in business combinations?

• A) Contingent consideration payable in cash is reported under liabilities.
• B) Contingent consideration payable in stock shares is reported under stockholders' equity.
• C) Contingent consideration is recorded because of its substantial probability of eventual payment.
• D) The contingent consideration fair value is recognized as part of the acquisition regardless of whether eventual payment is based on future performance of the target firm or future stock price of the acquirer.
• E) Contingent consideration is reflected in the acquirer's balance sheet at the present value of the potential expected future payment.

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Definitions:

Age Stratification

The division of a society into groups based on age, often affecting individuals' roles, responsibilities, and access to resources.

Cohort's Contribution

The impact or influence of a group of people born around the same time on a particular field or study.

Age Stratification

The hierarchical ranking and categorization of people based on their age, often influencing their access to resources and power within a society.

Sociology of Aging

A subfield of sociology that focuses on understanding the social aspects of aging, including the experiences, challenges, and opportunities that older adults face.