Which of the Following Is NOT Omitted from the Consolidated

question 14

Multiple Choice

Which of the following is NOT omitted from the consolidated accounts?

• A) Interest owing to parent company by subsidiary company
• B) Intercompany sales
• C) Management fees charged to the subsidiary by the parent company
• D) None of the above - they are all omitted

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Definitions:

Intermittent Profits

Earnings that are not consistent or regular, often fluctuating due to various external or internal factors.

Competitive Advantage

An attribute or set of attributes that allows an organization to outperform its competitors.

Sustainable Competitive Advantage

Sustainable competitive advantage exists through realising cost and quality, knowledge and speed, creating a market stronghold and protecting financial resources.

Strategic Management

involves the formulation and implementation of the major goals and initiatives taken by a company's top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes.