Which of the Following Internal Record-Keeping Methods Can a Parent

question 63

Multiple Choice

Which of the following internal record-keeping methods can a parent choose to account for a subsidiary acquired in a business combination?

• A) initial value or book value.
• B) initial value, lower-of-cost-or-market-value, or equity.
• C) initial value, equity, or partial equity.
• D) initial value, equity, or book value.
• E) initial value, lower-of-cost-or-market-value, or partial equity.

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Definitions:

Ideological

Relating to or based on a system of beliefs, values, or ideas that characterizes a particular culture or group.

Contingent

Reliant on another factor and not guaranteed or definitive.

Mandatory Minimum

A type of criminal sentence determined by law that establishes the minimum length of prison time that must be served for certain offenses.

Punitive Policies

Strategies or laws that are intended to punish individuals or entities for misconduct or crimes.