All of the Following Statements Regarding the Sale of Subsidiary

question 4

Multiple Choice

All of the following statements regarding the sale of subsidiary shares are true except which of the following?

• A) The use of specific identification based on serial number is acceptable.
• B) The use of the FIFO assumption is acceptable.
• C) The use of the averaging assumption is acceptable.
• D) The use of specific LIFO assumption is acceptable.
• E) The parent company must determine whether consolidation is still appropriate for the remaining shares owned.

---

Definitions:

Peer-Review Boards

Committees made up of employees who review decisions or actions (such as disputes or grievances) within an organization, offering a form of internal oversight.

Fast-Track

A process or program designed to speed up employee development or career advancement, often by providing intensive training and opportunities.

Vice-President

A high-ranking executive officer in a company or organization, typically ranking just below the president and often responsible for a specific department or division.

Discriminatory

Behaviors or practices that unfairly single out individuals or groups for differential treatment based on factors such as race, gender, age, or sexual orientation.