There Are Three Main Concepts of Consolidation - Proprietary, Entity

question 56

Multiple Choice

There are three main concepts of consolidation - proprietary, entity and parent entity. The choice of concept affects how consolidated financial statements are prepared:

• A)Only where the subsidiary is less than wholly owned by the parent.
• B)Only where the subsidiary is wholly owned by the parent.
• C)Always.
• D)Only where the subsidiary is profitable.

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Definitions:

Athletes

Individuals who are highly skilled in physical activities or sports, often participating in competitions.

Physical Activity

Any bodily movement produced by skeletal muscles that requires energy expenditure, including activities undertaken while working, playing, or exercising.

Vitamins

Organic compounds that are essential for normal growth and nutrition and are required in small quantities in the diet because they cannot be synthesized by the body.

Minerals

Inorganic substances required by the body in small amounts for various functions, including bone formation and enzyme activation.