FASB 141R (ASC 805)requires Contingent Consideration in a Business Combination

question 18

Multiple Choice

FASB 141R (ASC 805) requires contingent consideration in a business combination to be classified as:

• A)An asset
• B)A liability or equity
• C)An asset or equity
• D)An asset or a liability

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Definitions:

Judicial Review

The power of courts to assess whether a law, policy, or executive action is in conflict with the constitution.

Constitutionality

The quality or condition of being in accordance with the constitution of a country or organization.

Appellate Review

The process by which higher courts review and potentially reverse the decisions or actions taken by lower courts.

Federal Judges

Jurists appointed to preside over courts established by the federal government.