Which of the Following Statements Is False Regarding the Assignment

question 8

Multiple Choice

Which of the following statements is false regarding the assignment of a gain or loss on intercompany bond transfer?

• A) Subsidiary net income is not affected by a gain on bond transaction.
• B) Subsidiary net income is not affected by a loss on bond transaction.
• C) Parent Company net income is not affected by a gain on bond transaction.
• D) Parent Company net income is not affected by a loss on bond transaction.
• E) Consolidated net income is not affected by a gain or loss on bond transaction.

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Definitions:

Ordinal

A type of qualitative data that represents categories with a meaningful order or ranking, but without a precise mathematical difference between them.

Mediating Variable

A variable that helps explain the relationship between the independent and dependent variables, acting as an intermediary in the cause-effect relation.

Direct Correlation

A relationship between two variables in which both either increase or decrease together.