Which of the Following Is Correct

question 8

Multiple Choice

Which of the following is correct?

• A)No consolidation working paper entry is required for this transaction in 2011.
• B)A consolidation working paper entry is required only if the subsidiary was less than 100% owned in 2011.
• C)A consolidation working paper entry is required each year that Sidd has the land.
• D)A consolidated working paper entry was required only if the land was held for resale in 2011.

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Definitions:

Salaries Expense

An accounting item that represents the total amount paid to employees in the form of salaries over a specific period of time.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Prepaid Insurance

An asset account that represents insurance payments made in advance for future coverage periods.

Insurance Premium

The amount of money an individual or business must pay for an insurance policy, which provides financial protection or reimbursement against losses.