Consolidated Statements for X, Y, and Z Are Proper If

question 10

Multiple Choice

Consolidated statements for X, Y, and Z are proper if

• A)​X owns 100% of the outstanding common stock of Y and 49% of Z; M owns 51% of Z.
• B)​X owns 100% of the outstanding common stock of Y and 75% of Z; X bought the stock of Z one month before the statement date and sold it 6 weeks later.
• C)​X owns 100% of the outstanding stock of Y; Y owns 75% of Z.
• D)​There is no interrelation of financial control among X, Y, and Z; however, they are contemplating the joint purchase of 100% of the outstanding stock of D.

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Definitions:

Response Characteristic

A specific reaction or behavior exhibited by an individual in response to a stimulus or situation.

Primacy Effect

The tendency to remember information at the beginning of a list better than the information that follows.

Halo Effect

A cognitive bias in which the perception of one positive characteristic of a person influences the overall perception of them as favorable.

Phi Phenomenon

An optical illusion of perceived motion created by the rapid succession of images or objects.