05) Which of the following stateme consolidation is true: (1) Subsidiaries are consolidated in full (2) Associates are equity accounted Select one: O a. Neither statement O b. Statement (1) only c. Both statements O d. Statement (2)

05) Which of the following stateme consolidation is true: (1) Subsidiaries are consolidated in full (2) Associates are equity accounted Select one: O a. Neither statement O b. Statement (1) only c. Both statements O d. Statement (2)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 13MCQ

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

05) Which of the following statement/s regarding the method of
consolidation is true:
(1) Subsidiaries are consolidated in full
(2) Associates are equity accounted
Select one:
O a. Neither statement
O b. Statement (1) only
c.
Both statements
O d. Statement (2)

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