What Is the Purpose of Showing an Allocation of the Net

question 61

Multiple Choice

What is the purpose of showing an allocation of the net income between the parent and the subsidiary companies on the consolidated statement of comprehensive income?

• A)To report the net income of the subsidiary company to its shareholders.
• B)To report the net income of the parent and subsidiary companies to their respective shareholders.
• C)To report the net income of the parent and subsidiary companies to the tax department.
• D)To report the net income of the parent company to its shareholders.

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Definitions:

Exclusive Good

A product or service that is available only to certain people or groups, often due to high price or scarcity.

Public Good

A good or service offered to every member of a society for free, either by public authorities or by a private organization or person, without seeking profit.

Optimal Area

The most advantageous or efficient region or point for a specific activity or condition.

Public Good

A non-excludable and non-rivalrous good that can be consumed by everyone, such as national defense or public parks.