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Contingent Consideration Will Be Classified as a Liability When

Question 3

Multiple Choice

Contingent consideration will be classified as a liability when:


A) it will be paid in the form of additional equity.
B) it will be paid in the form of cash or another asset.
C) the form of payment will be determined at a future date.
D) the acquirer decides the appropriate time to make a payment.

Correct Answer:

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