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When a Subsidiary Is Not Consolidated,it Is Accounted for as an Investment

question 49

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When a subsidiary is not consolidated,it is accounted for as an investment on the parent's balance sheet.


Definitions:

Standard Deviation

Standard deviation measures the amount of variation or dispersion from the average in a set of data points, indicating how spread out the numbers are.

Real Rate of Interest

The interest rate that has been adjusted to remove the effects of inflation; reflects the true cost of borrowing.

Nominal Rate

The rate of interest before adjustments for inflation, representing the face value rate agreed upon in financial instruments and agreements.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

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