Where the Financial Statements of a Subsidiary Are Prepared at a Date

question 20

Multiple Choice

Where the financial statements of a subsidiary are prepared at a date differing from that of the parent, the group must disclose:

• A) the date used by the subsidiary.
• B) the reason for the parent using a different date.
• C) the reason for the subsidiary using a different date.
• D) both the date used by the subsidiary as well as the reason for the subsidiary using a different date.

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Definitions:

Transactions

The exchange of goods, services, or funds between two or more parties, forming the basic activities recorded in accounting.

Parking Lot Cleaning

The service of removing trash, debris, and sometimes snow from outdoor parking areas to maintain cleanliness and safety.

Gas & Electric Company

A utility company providing natural gas and electricity services to residential, commercial, and industrial customers.

Accounting Equation

Formula that represents the relationship between the assets, liabilities, and owner's equity of a company: Assets = Liabilities + Owner’s Equity.