The acquisition-related costs associated with a business combination are accounted for as ____________ in the periods in which they are incurred and the services are received.
A)liabilities
B)expenses
C)equity
D)goodwill

Question

Quizplus · Accepted Answer

The acquisition-related costs should be recognized as expenses in the periods in which they are incurred and the services are received. This treatment is required under the accounting standard ASC 805-10-25-20 which specifies that the acquisition costs, such as professional fees for legal, accounting, and valuation services, should be expensed as incurred.

The Acquisition-Related Costs Associated with a Business Combination Are Accounted