Which Statement Is Not Correct About Strategic Investments

question 6

Multiple Choice

Which statement is not correct about strategic investments?

• A)Proportionate consolidation is used for joint ventures because of the presence of joint control.
• B)Proportionate share of the investee's assets is included in the joint venturer's balance sheet.
• C)Consolidation effectively results in two legal entities being reported as one economic unit.
• D)The fair value through profit or loss method is used for strategic investments.

---

Definitions:

Deductive Reasoning

A logical process in which a conclusion follows necessarily from the stated premises; it is inference where true premises develop a true conclusion.

Skeptical

Being skeptical involves doubting or questioning the validity or authenticity of something.

Well-defined

Clearly described or outlined, with no ambiguity or confusion about the nature or limits of something.

Starting Information

The initial data or clues available to solve a problem or undertake a task, crucial for determining the direction and methods for reaching a solution or goal.