When an Acquirer Accounts for a Business Combination They Have

question 1

Multiple Choice

When an acquirer accounts for a business combination they have to consider:
I - Recognition of the identifiable assets acquired.
II - Measurement of the identifiable assets acquired.
III - Recognition of the liabilities assumed.
IV - Measurement of the liabilities assumed.

• A) I and II only.
• B) I, II, III and IV.
• C) I and III only.
• D) II and IV only.

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Definitions:

Certificate of Existence

An official document issued by a government authority that confirms the legal status and existence of a corporation or other entity at a certain date.

Limited Partnership

A partnership structure where some partners contribute capital and enjoy profits without managing the business, hence have limited liability.

Sole General Partner

is an individual or entity that is the only general partner in a partnership, responsible for the management of the partnership and personally liable for its debts.

Limited Partnership

A form of business partnership where there is at least one general partner liable for the debts of the business and one or more limited partners whose liability is limited to their investment.