Which of the Following Methods Uses Procedures Closest to Those

question 49

Multiple Choice

Which of the following methods uses procedures closest to those used in preparing consolidated financial statements?

• A) The fair value through profit or loss (FVTPL) approach
• B) The cost method
• C) The fair value through other comprehensive income (FVTOCI) approach
• D) The equity method

---

Definitions:

Operating Expenses

Costs associated with the day-to-day functions of a business outside of direct production costs, including items like rent, utilities, and payroll expenses.

Sales

Sales refer to the transactions where goods or services are exchanged for money, representing the primary source of revenue for most businesses.

Income Statement Data

Financial information that summarizes a company's revenues, expenses, and profits over a specific period.

Operating Expenses

Costs incurred in the day-to-day operations of a business, excluding direct material and labor costs related to the production of goods or services.