Which of the Following Statements Is Incorrect

question 8

Multiple Choice

Which of the following statements is incorrect?

• A) The fair value adjustments may be made via the consolidation worksheet or in the actual records of the subsidiary.
• B) All assets can be revalued in the subsidiary's accounts.
• C) If the assets can be revalued in the subsidiary accounts, the increase in value will be recognised as part of the pre-acquisition equity in asset revaluation surplus.
• D) If the assets are revalued in the consolidation worksheet, the increase in value will be recognised as part of the pre-acquisition equity in the business combination valuation reserve.

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Definitions:

Normality

A statistical condition where data is symmetrically distributed around the mean, following a bell-shaped curve known as the normal distribution.

Null Hypothesis

The default hypothesis that there is no significant difference or relationship between specified populations, any observed difference being due to sampling or experimental error.

Directional Alternative

A hypothesis that outlines the anticipated direction in the variation or association among variables.

T-statistic

A T-statistic is used in statistical testing to determine the significance of the difference between the means of two groups relative to the spread or variability of their scores.