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:

Task Goals

Specific objectives or targets related to the successful completion of a job or task.

Increase Work Efforts

An initiative or practice to enhance the quantity and quality of energy, time, and resources employees allocate to their job roles and responsibilities.

Increase Compensation

The act of raising the salary or overall remuneration package of employees to meet market standards, reward performance, or address inflation.

Expectancy Theory

This is a motivational theory in psychology that proposes an individual's behavior is determined by their anticipated outcomes or rewards.