Which of the Following Statements Is True Regarding the Consolidation

question 20

Multiple Choice

Which of the following statements is true regarding the consolidation process under ASPE?

• A)Under ASPE, the parent has the option of not consolidating with its subsidiary.
• B)Under ASPE, the parent must consolidate with its subsidiary.
• C)Under ASPE, the parent must use the cost or the equity method to account for its subsidiary.
• D)None of the above is true.

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Definitions:

Motions

Movements or the act of changing place, position, or posture, often studied in the context of physics.

Continuous

Describes an unbroken or uninterrupted sequence or extent of something, often referring to processes, functions, or variables in mathematics or physics.

Intermolecular Forces

Forces of attraction or repulsion which act between neighboring particles (atoms, molecules, or ions) influencing the properties of substances.

Compressible

Describes a characteristic of materials or substances that can have their volume significantly reduced under pressure.