In an Inflationary Economy, Under Which Consolidation Method Would Total

question 50

Multiple Choice

In an inflationary economy, under which consolidation method would total assets in the consolidated balance sheet at the acquisition date be greatest?

• A) Proportionate consolidation method
• B) Parent company method
• C) Fair value enterprise method
• D) Identifiable net assets method

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Definitions:

Discipline

The practice of training people to obey rules or a code of behavior, using punishment to correct disobedience.

Inspecting

The process of examining something closely in order to gain information.

Unrestricted

Free from limitations, controls, or restrictions; allowing complete freedom of movement, action, or use.

Condone

To overlook, forgive, or disregard an offense without protest or censure.