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:

Credit Scoring

A statistical analysis performed by lenders and financial institutions to assess a person's creditworthiness and determine the likelihood of loan repayment.

Consumer Credit

Loans extended to individuals for personal, family, or household purchases or expenses.

Payables Risk Analysis

The assessment of the risks associated with failing to meet the company’s obligations on time, affecting its creditworthiness.

Receipts Assessment

This involves evaluating and analyzing the receipts of a business to determine its financial health and performance.