Which of the Following Consolidation Concepts Are Described Correctly

question 84

Multiple Choice

Which of the following consolidation concepts are described correctly?

• A) The entity concept requires the inclusion of all the parent entity assets and the proportionate share of the assets and liabilities of the subsidiaries where the proportion is based on the direct ownership of the capital of the subsidiary by parent companies within the group.
• B) The proprietary concept includes all the assets and liabilities of the parent company and subsidiaries as assets and liabilities of the group. Non-controlling interest is treated as a liability of the group.
• C) The parent-entity concept includes all assets and liabilities of the parent and its subsidiaries in the consolidated accounts. The non-controlling interest is treated as a liability of the group.
• D) The proprietary concept includes all the assets and liabilities of the parent company and subsidiaries as assets and liabilities of the group. Non-controlling interest is treated as a liability of the group; the parent-entity concept includes all assets and liabilities of the parent and its subsidiaries in the consolidated accounts. The non-controlling interest is treated as a liability of the group.

---

Definitions:

Methylene-dioxy-methamphetamine

Methylene-dioxy-methamphetamine, commonly known as MDMA or 'ecstasy,' is a synthetic drug that alters mood and perception, noted for its stimulant and psychedelic effects.

MDMA

3,4-Methylenedioxymethamphetamine, a psychoactive drug primarily used for recreational purposes, known for its euphoric and empathogenic effects.

Addictive Potential

The likelihood that a substance or activity will lead to addiction, characterized by a compulsive need to engage with the substance or activity.

Discomfort

The feeling of physical or mental unease, such as minor pain or distress, often prompting the desire to alleviate it.