Which of the Following Statements Is Correct

question 41

Multiple Choice

Which of the following statements is correct?

• A) Revaluations of assets such as goodwill and inventory are not permitted in the accounting records of the subsidiary.
• B) Inventories can be revalued to an amount greater than its cost in the records of the subsidiary.
• C) AASB 3 Business Combinations requires that any revaluations of a subsidiary's assets at acquisition date must be done in the consolidation worksheet.
• D) The revaluation of non-current assets in the subsidiary's records means that the subsidiary has adopted the cost model of accounting for those assets.

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Definitions:

Order Fulfillment Department

A functional area within a business that manages the process of receiving, processing, and delivering orders to customers.

Tech Support Department

A division within a company that assists customers with technical problems or issues related to their products or services.

Customer Cost Analysis

A financial assessment to determine the cost associated with acquiring, serving, and retaining a customer, helping businesses understand the value of customer relationships.

Time-Driven Activity-Based Costing

A costing method that assigns costs to products based on the estimated time required for activities, improving accuracy over traditional ABC by using time as a key cost driver.