In a Business Combination the Revaluation of Non-Current Assets in the Records

question 24

Multiple Choice

In a business combination the revaluation of non-current assets in the records of the subsidiary means that the subsidiary has effectively adopted the:

• A)parent-entity model of consolidation
• B)proprietary model of accounting
• C)cost model of accounting
• D)revaluation model of accounting.

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Definitions:

Cash Receipts

The sum of all money received by a company during a specified period, from operations, investments, and financing.

Depreciation Expense

The portion of the cost of a fixed asset that is recorded as an expense each year of its useful life.

Cash Payments

Transactions involving the outflow of cash to settle obligations or purchase goods and services.

Cash Budget

A forecast of cash inflows and outflows over a certain period, used to manage the company's cash balance and ensure liquidity.