29

Which is a true statement for a business combination that is a business acquisition?

Select one:

a.

In process Research and Development is expensed

b.

Acquired assets are measured based on relative fair value, with limited exceptions

c.

Transaction costs are expensed as part of the acquisition

d.

The intent of the purchaser is the primary differentiator between business acquisitions and asset acquisition

e.

Contingent payments that are probable are not recognized as part of the acquisition consideration

40.

What type of risk is associated with a forward contract?

Select one:

a.

The risk that the price, interest rate, or exchange rate will decrease

b.

The risk that company net income will decrease between now and the contract settlement date

c.

The risk that the price, interest rate, or exchange rate will increase

d.

There is no risk associated with a forward contract, it just locks in a rate

e.

The risk that the party required to make the settlement payment will not be able to pay