Specific Identification Is

question 35

Multiple Choice

Specific identification is:

• A)the classification of an account as an asset,liability,or stockholders' equity account.
• B)an inventory method that individually identifies and records the cost of each item as cost of goods sold.
• C)a detailed list of all of a corporation's stockholders.
• D)a high-tech security technique for identifying key employees.

---

Definitions:

New-entity Method

A consolidation method that treats the combined entities as a completely new reporting entity.

Acquisition Method

An accounting method used to assess and combine the financial statements of two companies in the event of a merger or acquisition.

Fair Market Values

The price at which an asset would trade in a competitive auction setting, representing the asset's value between willing buyers and sellers.

Net Assets

Net Assets represent the residual interest in the assets of an entity after deducting its liabilities, essentially equivalent to equity in a for-profit organization.