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Problem 1: A contingent liability assumed in a business combination
Group of answer choices
a. is not accounted for by the acquirer if the contingent liability has an improbable outflow of economic resources
b. is recognized only if there is present obligation, probable outflow of economic resources, and can be measured reliably
c. is recognized even if it has an improbable outflow of economic resources for as long as there is present obligation and the fair value of the obligation can be measured reliably
d. a and c
Problem 2: A contingent liability assumed in a business combination is recognized
a. even if it has an improbable outflow of resources embodying economic benefits
b. it its fair value can be measured reliably
c. if it is a present obligation that arises from past events and
d. all of these
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