In Consolidated Financial Statements of a Parent and Subsidiaries, an Income

question 55

Multiple Choice

In consolidated financial statements of a parent and subsidiaries, an income tax adjustment is necessary:

• A)For advising Canada Revenues Agency only.
• B)Whenever unrealized profit causes a difference between the carrying amount of an asset and the carrying amount shown in the consolidated financial statements.
• C)Where unrealized profit causes a difference between the carrying amount of an asset or a liability in the records of the legal entity only.
• D)All of the above.

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Definitions:

Civil Rights Act

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Covered Organizations

Entities that fall under the jurisdiction of certain regulations and laws, requiring them to comply with specific standards or protections.

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A legal doctrine that means an employer can terminate an employee at any time for any reason, except an illegal one, or no reason without incurring legal liability.

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