Which Statement Is Correct About an Associate

question 94

Multiple Choice

Which statement is correct about an associate?

• A)An arrangement where one party has the power to participate in the financial and operating policy decisions of another entity.
• B)An arrangement where one entity governs the financial and operating policies about another entity.
• C)A contractual arrangement whereby two or more parties share control over an economic activity and all strategic decisions requires unanimous consent by all parties.
• D)An arrangement that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity.

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Definitions:

Adjusted Trial Balance

A version of the trial balance that reflects account balances after adjustments, serving as the basis for preparing financial statements.