Which of the Following Statements Is Incorrect

question 16

Multiple Choice

Which of the following statements is incorrect?

• A)in sequential consolidation the direct ownership interest of the immediate parent entity would be used to eliminate pre- acquisition capital and reserves
• B)the most important principle underlying the multiple consolidation method is that indirect ownership interests are relevant only to post- acquisition profits and changes in reserves
• C)the sequential consolidation method is less cumbersome to apply than the multiple consolidation method
• D)sequential consolidation and multiple consolidation both generate exactly the same results

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Definitions:

Chemical Reactions

Processes that involve the rearrangement of molecular or ionic structure of substances, resulting in new products with different properties.

Transport Protein

A protein that aids in the movement of substances across a cell membrane.

Quaternary Structure

The overall conformation of a protein produced by the interaction of two or more polypeptide chains. Compare with primary, secondary, and tertiary protein structure.

Polypeptide Chains

Long chains of amino acids linked by peptide bonds, which fold into specific three-dimensional structures to form proteins.