If the Parent Company Owns More Than 50% of the Subsidiary's

question 14

Multiple Choice

If the parent company owns more than 50% of the subsidiary's voting stock,and effectively has control of the subsidiary,consolidated financial statements are

• A)optional.
• B)required.
• C)not possible.
• D)required only by the SEC.

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period.

Balance Sheet

A financial statement that shows the assets, liabilities, and shareholders' equity of a company at a specific point in time.

Dollar-Value LIFO Retail Inventory Method

A method for valuing inventory that combines the last-in, first-out (LIFO) principle with dollar values, adjusting for changing prices and inventory levels.

Price Index

A statistical measurement that shows changes in the price level of goods and services over time, indicating inflation or deflation.