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

question 62

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:

Grameen Bank

A microfinance organization and community development bank founded in Bangladesh that makes small loans to impoverished borrowers.

Environmentally Harmful Subsidies

Financial contributions or incentives from governments that encourage practices detrimental to the environment, such as fossil fuel production and agriculture that leads to deforestation.

Unnecessary Consumption

The purchasing or usage of goods and services in excess of one's practical needs, often leading to wastefulness.