When a Subsidiary Is Not Consolidated,it Is Accounted for as an Investment

question 49

True/False

When a subsidiary is not consolidated,it is accounted for as an investment on the parent's balance sheet.

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Definitions:

Acquisition

The process of acquiring control of another company by purchasing its shares or assets.

Cash Flows

The total amount of money being transferred into and out of a business, particularly affecting its liquidity.

Shares Outstanding

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Stockholders

Individuals or entities that legally own one or more shares of stock in a joint-stock company, thus having a claim to a part of the company's assets and earnings.