Which of the Following Are Other Issues to Consider in the Preparation

question 18

Multiple Choice

Which of the following are other issues to consider in the preparation of the consolidated financial statements?
I. when a parent acquires a subsidiary after that subsidiary has acquired its own subsidiary.
II. when the parent changes its ownership interest in a subsidiary after the consolidation group has been formed.
III. where the parent has control over two subsidiaries but only has an ownership interest in one of those subsidiaries.

• A) I, II and III
• B) I and II only
• C) II and III only
• D) I and III only

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Definitions:

Self-Compassion

The act of showing compassion and empathy towards oneself during times of suffering or failure, instead of engaging in severe self-judgment.

Inadequate

Lacking the quality or quantity required; insufficient for a purpose.

Self-Serving Bias

The common tendency to attribute successes to personal characteristics and failures to external factors, often to maintain self-esteem.

Actor-Observer Effect

The tendency to make internal attributions for the behavior of others and external attributions for our own behavior.