Select the Incorrect Statement from the Following

question 11

Multiple Choice

Select the incorrect statement from the following:

• A)Adjustments are required to eliminate any transactions between Parent and Sub (e.g., selling or other transfer of assets).
• B)Even when the parent owns less than 100% of the subsidiary's stock, 100% of the subsidiary's assets and liabilities are included in the consolidated balance sheet.
• C)Any consolidated net income attributable to minority interest must be clearly identified and shown on the consolidated income statement.
• D)Consolidated net income is equal to the sum of the parent's net income and the sub's net income.

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Definitions:

Security Agreement

A legal document that provides a lender a security interest in a specific asset or property pledged as collateral.

Secured Goods

Items that are used as collateral for a loan or are subject to a security interest, ensuring the fulfillment of an obligation.

Acceleration

A provision in a mortgage agreement that allows the mortgagee to demand the entire balance due when the mortgagor misses a single installment payment.

Debt Due

The amount of money that is owed and should be paid, typically by a specific deadline or upon demand.