In Order for a Tangible Asset to Be Recognised by an Acquirer

question 4

Multiple Choice

In order for a tangible asset to be recognised by an acquirer under a business combination it must be probable that future economic benefits will flow to the acquirer and:

• A)its fair value can be measured reliably
• B)it must be a non-current item
• C)it must be measured using the present value method d,it may not be a non-monetary asset.

Recognize the conditions under which a security interest can be created and perfected.

Identify the effects of default on a secured transaction.

Understand the concept of a floating lien and its implications.

Learn the prioritization rules for competing security interests in the same collateral.

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Definitions:

Differentiated Products

Goods or services that are distinct in quality, features, design, or brand from those offered by competitors in the same market.

Market Demand

The total quantity of a product or service that consumers are willing and able to purchase at various prices within a given period.

Competitive Industry

A market in which multiple firms compete against each other to sell their goods or services to consumers.

Long-Run

A period in economics during which all factors of production and costs are variable, allowing full adjustment to change.