When a Parent-Subsidiary Relation Exists, Consolidated Financial Statements Are Prepared

question 14

Multiple Choice

When a parent-subsidiary relation exists, consolidated financial statements are prepared in recognition of the accounting concept of:

• A) Reliability
• B) Materiality
• C) Legal entity
• D) Economic entity

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Definitions:

Behaviorist Paradigm

A theory in psychology that focuses on observable and measurable behaviors, disregarding mental activities, and emphasizing the role of environment in shaping behavior.

Rewards And Punishments

The use of positive reinforcement (rewards) and negative reinforcement (punishments) to influence behavior.

Phenomenological Approach

The theoretical view of personality that emphasizes experience, free will, and the meaning of life. Closely related to humanistic psychology and existentialism.

Conscious Awareness

The state of being aware of and able to comprehend one's own existence, sensations, thoughts, surroundings, and emotions.