Consolidated Financial Statements Should Be Prepared Only When a Subsidiary

question 164

True/False

Consolidated financial statements should be prepared only when a subsidiary company has a controlling interest in the parent company.

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Definitions:

Methane Gas

A colorless, odorless flammable gas that is a major component of natural gas, used as a fuel and in the production of various chemicals.

Carbon Dioxide

A gas characterized by its lack of color and smell, produced when carbon and organic compounds burn, and during the respiration process, which plants absorb in photosynthesis.

Definite Proportions

A principle stating that a chemical compound always contains its component elements in fixed ratio by mass and does not depend on its source and preparation method.

Relative Masses

A concept referring to how the mass of one particle or object compares to another, often used in chemistry to discuss the atomic mass of elements relative to the carbon-12 standard.