A Conglomerate Corporation Must Make Retrospective Adjustments to Account for a Material

question 31

True/False

A conglomerate corporation must make retrospective adjustments to account for a material change in reporting entity every year that it adds a new subsidiary or sells off a formerly owned subsidiary.

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Definitions:

Machinery

Mechanical devices or equipment required in the manufacturing process or any industry-specific operations.

Operating Leverage

A measure of how revenue growth translates into growth in operating income due to fixed versus variable costs in business operations.

Capital-Intensive

A business process or industry that requires large amounts of money to produce goods or services, often due to high costs of machinery and equipment.