Which of the Following Is the Primary Justification for Reporting

question 84

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:

Extinction

In psychology, the gradual weakening and eventual disappearance of a conditioned response.

Shaping

A behavioral psychology technique that reinforces behavior closer and closer to a desired goal, used in teaching new behaviors.

Step-by-step Reinforcement

The process of enhancing desired behaviors through a systematic approach that rewards successive approximations of the target behavior.

Insight

A deep understanding of a person or situation, often arrived at suddenly, that clarifies the problem or solution.