If a Parent Has Some Control Over a Subsidiary but the Subsidiary

question 9

Multiple Choice

If a parent has some control over a subsidiary but the subsidiary is not consolidated, the subsidiary is accounted for as:

• A) a marketable security
• B) an investment
• C) a liability
• D) a fixed asset
• E) none of the answers are correct

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Definitions:

Prices

The amount of money required to purchase goods or services, set by supply and demand in a market.

Market Price

The present rate at which a service or asset is available for purchase or sale.

Value Loss

The reduction in the value of an asset, investment, or product, often due to market changes, deterioration, or obsolescence.

Gift

A voluntary transfer of property or funds from one individual to another without expectation of payment or compensation.