Which of the Following Is the Primary Justification for Reporting

question 15

Multiple Choice

Which of the following is the primary justification for reporting the acquisition of a controlling interest on a consolidated basis?

• A) The companies are legally and in economic substance separate.
• B) The companies are legally and in economic substance one entity.
• C) The companies are legally one entity but they are separate in economic substance.
• D) The companies are legally separate but they are one entity in economic substance.

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Definitions:

Bromo Monochloride

Likely referring to a molecule consisting of bromine and chlorine atoms, although its correct formula and commonly used name might be different.

Electronegative Element

An electronegative element is an element that has a high tendency to attract electrons towards itself in a chemical bond.

NaOH

Sodium hydroxide, a strong base used in many industrial and chemical processes.

Oxygen

A chemical element with the symbol O and atomic number 8; it is a highly reactive nonmetal and an oxidizing agent that readily forms oxides with most elements as well as with other compounds.