Which of the Following Statements Is Correct

question 24

Multiple Choice

Which of the following statements is correct?

• A)the identifiable assets acquired and the liabilities assumed must be measured at their fair value at acquisition date
• B)the identifiable assets acquired and the liabilities assumed must be measured at their fair value at balance date
• C)the identifiable assets acquired and the liabilities assumed must be measured at their recoverable amount at acquisition date
• D)the identifiable assets acquired and the liabilities assumed must be measured at their book value at balance date

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Definitions:

Operating Flexibility

The degree to which a company can adjust its operations and costs in response to changes in the business environment.

Manufacturing Facilities

Physical locations where products are produced or manufactured, including plants and factories.

U.S.GAAP

The set of accounting principles and standards used in the United States to govern the preparation of financial statements by publicly traded companies, focusing on transparency, consistency, and comparability.

Ascending Order of Liquidity

A financial classification method where assets are listed from the least liquid to the most liquid, typically starting with long-term investments and ending with cash.