Which of Following Can a User Determine by Using Consolidated

question 63

Multiple Choice

Which of following can a user determine by using consolidated financial statements?

• A)The revenue and profit from transactions between the parent and its subsidiaries.
• B)The amount of dividends the subsidiary paid to the parent.
• C)The cost to the parent of their original investment in the subsidiary.
• D)The resources that are under the management of the corporate group.

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Definitions:

Net Operating Income

A company's total earnings derived from its operations, excluding taxes and interest.

Advertising

The activity or profession of producing advertisements for commercial products or services.

Contribution Format

A way of presenting a profit and loss statement where costs are separated into variable and fixed, and the contribution margin is highlighted.

Target Profit

The goal set for the amount of net income a company plans to achieve at a specific time.