When Group Members Do Not Apply the Same Accounting Methods,the

question 47

Multiple Choice

When group members do not apply the same accounting methods,the consolidation process requires which of the following to be done?

• A) All group members must change their accounting policies to be consistent.
• B) Adjustments must be made on consolidation to remove the impacts of the different policies.
• C) Two sets of consolidated accounts need to be presenteD. the first done on the basis of the inconsistent policies; the second done after the subsidiaries have adjusted their policies in line with the parent.
• D) A choice is to be made by the parent's management between any of the three other options listed.
• E) Nothing needs to be done.

Recognize the potential for mutual benefits from trade between individuals or nations.

Understand how trade can lead to an increase in overall economic efficiency and output.

Understand the principle of comparative advantage and its implications for international trade.

Analyze the impact of specializing based on comparative advantage on a country's production and consumption possibilities.

---

Definitions:

Economic Value

Refers to the worth of a good or service determined by the market and the benefits it provides to those who purchase or use it.

Wages

Payments made to employees by employers in exchange for work performed, often expressed as an hourly, daily, or piece rate.

Running Mate

A candidate selected by a political party's nominee for President to run for Vice President as part of the same ticket in an election.

Presidential Election

denotes the process by which a country's president is elected, typically involving a nationwide vote.