How should accounting fees for an acquisition be treated?
A)Expensed in the period of acquisition
B)Capitalized as part of the acquisition cost
C)Deferred and amortized
D)Deferred until the company is disposed of or wound-up

Question

Quizplus · Accepted Answer

Accounting fees for an acquisition are considered period costs and should be expensed in the period in which the acquisition occurs. They are not capitalized as part of the acquisition cost.

How Should Accounting Fees for an Acquisition Be Treated