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

question 11

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.

---

Definitions:

Account Balance

The difference between the total debits and total credits in an account, representing the current amount in that account.

Debits

Entries that increase asset or expense accounts, or decrease equity, liability, or revenue accounts, typically noted on the left side of an accounting ledger.

Credits

In accounting, credits refer to an entry on the right side of a double-entry bookkeeping system that increases liabilities, equity, or revenue or decreases an asset or expense account.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure a company's bookkeeping system is mathematically correct.