Which of the Following Statements Is Incorrect with Respect to Parent-Subsidiary

question 79

Multiple Choice

Which of the following statements is incorrect with respect to parent-subsidiary corporations?

• A)If a consolidated tax return is filed,losses on intercompany sales cannot be immediately recognized.
• B)A parent-subsidiary group must file a consolidated tax return.
• C)A parent-subsidiary group is one where a common parent corporation owns,directly or indirectly,at least 80% of one or more other corporations.
• D)With a consolidated return,net losses of one company can offset net income from another company.

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Definitions:

Control Systems

A set of devices or methods that manage, command, direct, or regulate the behavior of other devices or systems.

Code Of Ethics

A set of principles designed to help professionals conduct their business with honesty, integrity, and fairness.

Company's Culture

The shared values, beliefs, and behaviors that characterize the social and psychological environment of a business organization.

Management

The process of planning, organizing, directing, and controlling resources to achieve specific goals.