Inventory Was Acquired as Part of a Business Combination at the End

question 33

Multiple Choice

Inventory was acquired as part of a business combination at the end of 20X1. The inventory was sold in 20X2. How should the fair value increment for the inventory at acquisition be treated for consolidation at the end of 20X2?

• A)It should be added to inventory.
• B)It should be added to sales.
• C)It should be added to the cost of goods sold.
• D)It should be added to retained earnings.

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Definitions:

Social Learning

The process by which individuals observe and imitate the behavior of others within their social context, leading to learning and behavior change.

Classical Conditioning

A training method in which two signals are consistently associated, leading to a situation where a reaction initially triggered by the second signal is ultimately induced by just the first signal.

Organizational Behavior Modification

A method of applying principles of behavioral psychology to change individual or group behaviors within an organization.

Financial Reinforcement

Using monetary rewards or penalties to influence behavior in an organization or system.