A contingent liability of an acquiree
A)refers to future consideration due that is part of the acquisition agreement.
B)is recorded when it is probable that future events will confirm its existence.
C)may be recorded beyond the measurement period under certain circumstances.
D)should be recorded even if the amount cannot be reasonably estimated.

Question

A contingent liability of an acquiree
A)​refers to future consideration due that is part of the acquisition agreement.
B)​is recorded when it is probable that future events will confirm its existence.
C)​may be recorded beyond the measurement period under certain circumstances.
D)​should be recorded even if the amount cannot be reasonably estimated.

Quizplus · Accepted Answer

A contingent liability of an acquiree is recorded when it is probable that future events will confirm its existence.

A Contingent Liability of an Acquiree