Reba Orders a Pair of Custom-Made Cowboy Boots,C

question 24

Multiple Choice

Reba orders a pair of custom-made cowboy boots,C.O.D.from Home on the Range Western Wear.When the boots arrive,Reba pays the carrier for the boots,then opens the package,only to discover that the boots are the wrong snake skin color and three sizes too big.At this point:

• A) she is entitled to inspect the goods after payment (due to the C.O.D. terms) and she can reject the boots because they are nonconforming.
• B) Reba cannot revoke the acceptance, because the wrong color and size of the boots are not substantial impairments.
• C) Home on the Range can allege that Reba did not conduct a proper inspection; therefore, though Home on the Range must cure, Reba is obligated to pay for the return of the incorrect boots and the shipment of replacement boots.
• D) None of the above.

Grasp the concepts and accounting treatment of intangible assets in acquisitions.

Comprehend the process and principles behind the preparation of Consolidated Financial Statements.

Understand the shareholder's equity adjustments in business combinations and consolidated balance sheets.

Recognize the correct treatment of acquisition costs and the allocation of these costs in business combinations.

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Definitions:

Interim Financial Statements

Financial reports covering a period shorter than the fiscal year, often quarterly, to provide an ongoing view of the company's financial position.