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:

Inventory

The total amount of goods and materials held in stock by a business, warehouse, or store.

Gross Domestic Product

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a certain period of time.

Leakage

Any diversion of income from the domestic spending stream; includes saving, taxes, and imports.