Presenting Consolidated Financial Statements This Year When Statements of Individual

question 37

Multiple Choice

Presenting consolidated financial statements this year when statements of individual companies were presented last year is

• A) a correction of an error.
• B) an accounting change that should be reported prospectively.
• C) an accounting change that should be reported by restating the financial statements of all prior periods presented.
• D) not an accounting change.

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Definitions:

Automobile Producers

Companies or firms involved in the design, manufacturing, and/or marketing of cars.

China

A country located in East Asia, known for being the world's most populous country and for its significant economic, cultural, and political influence globally.

Equity

In finance, equity represents the ownership interest in a company or property, often measured as the difference between the value of the assets and the liabilities.

Efficiency

The optimal use of resources to achieve the desired outcomes with minimal waste of time, effort, or materials.