Which of the Following Statements Is Correct

question 38

Multiple Choice

Which of the following statements is correct?

• A)AASB 3 Business Combinations requires that any revaluations of a subsidiary's assets at acquisition date must be done in the consolidation worksheet.
• B)The revaluation of non-current assets in the subsidiary's records means that the subsidiary has adopted the cost model of accounting for those assets.
• C)Revaluations of assets such as goodwill and inventory are not permitted in the accounting records of the subsidiary.
• D)Inventory can be revalued to an amount greater than its cost in the records of the subsidiary.

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Definitions:

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A unit of mass in the metric system, equal to one thousand grams.

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Small bags designed to hold a specific weight of a product, typically measured in ounces.

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A chewy, often fruit-flavored confection made from gelatin, sugar, and various flavorings.

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Taxes levied by the government on individuals or entities based on their net income or profit.