For a Binary Many-To-Many Relationship Existing Between Entity Types a and B

question 111

Multiple Choice

For a binary many-to-many relationship existing between entity types A and B:

• A)a separate relation C is created;the primary key of relation C is a composite key consisting of the primary key for each of the two entities in the relationship
• B)the primary keys of relation A and relation B are designated as functionally dependent attributes
• C)secondary keys are used to establish the relationship
• D)place the primary key of either entity in the relation for the other entity or do this for both entities

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Definitions:

Intercompany Profits

Profits derived from transactions between companies within the same group, which may need to be eliminated in consolidated financial statements.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its identifiable net assets; reflects the value of the brand, customer relationships, and reputation.

Parent-Company Extension Method

This method involves the accounting for investments in subsidiaries from the perspective of the parent company, focusing on the extension of the parent company's financial statements to include its interest in subsidiaries.

Entity Method

An approach in accounting that records the investments of a parent company in a subsidiary as distinct separate entities.