If a Parent Company Owns 90% of a Subsidiary's Outstanding

question 61

Multiple Choice

If a parent company owns 90% of a subsidiary's outstanding shares, the parent should generally account for the subsidiary's income under the

• A) cost/amortized cost model.
• B) fair value through net income model.
• C) fair value through other comprehensive model.
• D) consolidation method.

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Definitions:

Intersexed

An alternative term for individuals with ambiguous genitalia, emphasizing the natural diversity in human sex characteristics.

Binary Categorization

The classification of objects, concepts, or people into two distinct groups or categories.

Intergenerational Mobility

The comparison of adult children’s social class to that of their parents.

Increasingly Wealthy

Describes individuals or societies that are growing in wealth over time, typically due to economic growth, investments, and accumulation of assets.