Which of the Following Is Not a Change in Reporting

question 17

Multiple Choice

Which of the following is not a change in reporting entity?

• A) A company acquires a subsidiary that is to be accounted for as a purchase.
• B) A company presents consolidated or combined statements in place of statements of individual companies.
• C) A company changes the companies included in combined financial statements.
• D) A company changes the subsidiaries for which consolidated statements are presented.

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Definitions:

Second Generation

Often refers to the offspring of immigrants or the subsequent version or iteration of a product or technology.

Existing Business

A company or enterprise that has been operative for a period of time and has a track record of financial and operational history.

Existing Business

Refers to a business that has already been set up and is currently in operation.

Goodwill

An intangible asset representing the value of a company's brand, customer relations, employee morale, and other factors not directly measurable but that contribute to earnings.