Which of the Following Conditions Need NOT Be Met Before

question 9

Multiple Choice

Which of the following conditions need NOT be met before a parent company is not required to present consolidated financial statements for external reporting purposes?

• A) Its ultimate or any intermediate parent company produces consolidated financial statements.
• B) It does not have any debt or equity instruments traded in a public market.
• C) It has not filed, nor is in the process of filing, financial statements with a regulatory organization for the purposes of a public offering.
• D) It is a wholly-owned subsidiary of another entity.

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Definitions:

Beginning Balance

The amount of money or value of an account or inventory present at the start of a financial period before any transactions have occurred.

Net Income

The profit remaining after all operating expenses, interest, taxes, and dividends have been deducted from total revenue.

Classified Balance Sheet

A financial statement that organizes a company's assets, liabilities, and equity into subcategories for clearer understanding.

Asset Subsections

Specific categories under assets in financial accounting, such as current assets, fixed assets, etc.