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.

---

Definitions:

Law Of Small Numbers

A mental inclination that causes individuals to form wide-reaching conclusions based on limited data samples.

Gambler's Fallacy

The erroneous belief that if an event occurs more frequently than normal during a given period, it will happen less frequently in the future, or vice versa.

Midterms

Examinations given in the middle of an academic term to assess students' understanding of the course material up to that point.

Exceptionally Bright

Describing someone with superior intelligence, creativity, or ability, often significantly above the norm.