Which of the Following Statements Is Incorrect

question 6

Multiple Choice

Which of the following statements is incorrect?

• A) Under the partial goodwill method, the NCI is measured at fair value at acquisition date.
• B) Under the partial goodwill method, the NCI is measured as a proportion of the net fair value of the subsidiary's identifiable assets and liabilities at acquisition date.
• C) Extra columns are added to the consolidation worksheet to divide the group's equity into the NCI share and the parent's share.
• D) The adjustments for intragroup transactions are the same whether the subsidiary is wholly owned or whether there is an NCI in the subsidiary.

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Definitions:

Operating Cycle

The process by which a company spends cash, generates revenues, and receives cash either at the time the revenues are generated or later by collecting an accounts receivable.

Federal Government

The national government of a country, which holds the primary authority over the nation and implements laws, policies, and regulations across the entire country.

Adjusted Trial Balance

A financial statement that lists all accounts and their balances after adjustments have been made.

Expense Accounts

Accounts that track the costs of operating a company including costs of goods sold, operating expenses, and non-operating expenses.