Which of the Following Statements Is Correct

question 6

Multiple Choice

Which of the following statements is correct?

• A)adjustments to a share of profits of the subsidiary for intragroup services transactions are necessary when calculating the NCI
• B)intragroup items that involve only the statement of comprehensive income,such as interest revenue and expense or management fees income and expense,will never directly involve an outside party
• C)any unrealised profits or losses in the subsidiary's accounts,as a result of intragroup transactions,are considered to be profits/losses from a group perspective
• D)intragroup items that involve only the statement of comprehensive income,such as interest revenue and expense or management fees income and expense,will always eventually involve an outside party

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Definitions:

Distinguish Appearance

The ability to recognize and differentiate individuals or objects based on their visual characteristics or outward form.

Costume

A costume is a set of clothes worn to portray a particular character or identity, often used in performances, festivals, or themed events.

Formal Operations

In Piaget’s terms, mental operations in which all possible combinations are considered in solving a problem. Consequently, each partial link is grouped in relationship to the whole; in other words, reasoning moves continually as a function of a structured whole.

Appearance/Reality Distinctions

The cognitive ability to differentiate between how things appear and how they actually are.