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:

Federal Government

The national government of a federal state, where powers are divided between the central government and constituent territorial units.

State Government

The government of an individual state within a federal system, responsible for local laws and governance within its territory.

International Agency

An organization that operates across national borders, focusing on international issues and often providing services or enforcing regulations.

Merchants

Individuals or entities engaged in the business of buying and selling goods for profit, often with expertise in the trade of specific types of goods.