S1: A subsidiary is not excluded from consolidation simply because the investor is a venture capital organization, mutual fund, unit trust or similar entity. S2: Influence is the power to govern the financial and operating polices of an entity so as to obtain benefits from its activities. A. Only S2 is correct B. Both statements are correct C. Both statements are incorrect D. Only S1 is correct
S1: A subsidiary is not excluded from consolidation simply because the investor is a venture capital organization, mutual fund, unit trust or similar entity. S2: Influence is the power to govern the financial and operating polices of an entity so as to obtain benefits from its activities. A. Only S2 is correct B. Both statements are correct C. Both statements are incorrect D. Only S1 is correct
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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S1: A subsidiary is not excluded from consolidation simply because the investor is
a venture capital organization, mutual fund, unit trust or similar entity. S2:
Influence is the power to govern the financial and operating polices of an entity
so as to obtain benefits from its activities.
A. Only S2 is correct
B. Both statements are correct
C. Both statements are incorrect
D. Only S1 is correct
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