Which of the Following Statements Is Incorrect

question 5

Multiple Choice

Which of the following statements is incorrect?

• A) All assets can be revalued in the subsidiary's accounts.
• B) The fair value adjustments may be made via the consolidation worksheet or in the actual records of the subsidiary.
• C) If the assets can be revalued in the subsidiary accounts, the increase in value will be recognised as part of the pre-acquisition equity in asset revaluation surplus.
• D) If the assets are revalued in the consolidation worksheet, the increase in value will be recognised as part of the pre-acquisition equity in the business combination valuation reserve.

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Definitions:

Open-Ended Questions

Questions that allow respondents to answer in their own words, providing depth and insight beyond simple yes or no answers.

Closed-Ended Questions

Questions designed with predefined response options, allowing for easier quantification of answers but limiting the ability to provide nuanced responses.

Response Alternatives

The different options or answers that are provided for a question in a survey or questionnaire.

Panel Study

A longitudinal study where the same individuals or units are surveyed or measured over multiple time points.