Which of the Following Situations,involving Eliminations as Part of the Consolidation

question 3

Multiple Choice

Which of the following situations,involving eliminations as part of the consolidation process,would not have implications for the calculation of non-controlling interest?

• A) the sale of a non-current asset by the subsidiary to the parent
• B) the payment of a management fee by the subsidiary to the parent
• C) the sale of inventory by the parent to the subsidiary
• D) the payment of a management fee by the subsidiary to the parent and the sale of inventory by the parent to the subsidiary

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Definitions:

One-sample T Test

A statistical test used to compare the mean of a single sample to a known mean or expected value, to see if there is a significant difference.

Normal Population

A population with a distribution that follows the normal (Gaussian) curve, where most measurements are centered around the mean.

Sample Mean

The average value calculated from a sample of data, often used as an estimate of the population mean.

Null Hypothesis

In hypothesis testing, it is the default hypothesis that there is no effect or no difference, and it is subject to test for possible rejection.