In Preparing a Consolidated Financial Report,the Parent Entity Consolidates

question 37

Multiple Choice

In preparing a consolidated financial report,the parent entity consolidates:

• A) The financial statements of all entities over which it has the power to exercise control.
• B) The financial statements of only those entities over which it has the power to control and in which it holds more than 50% of the voting shares.
• C) The financial statements of only those entities in which it holds more than 50% of the ordinary share capital; as a result of which it necessarily has the power to exercise control.
• D) None of the above.

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Definitions:

Discrete Random Variable

A variable that can take on a countable number of different values, each with a certain probability, often used in statistical analysis.

Probability Histogram

A graphical representation of the distribution of a set of data, showing the probabilities or frequencies of occurrence of different outcomes.

Probability Z

A measure used in statistics that describes the number of standard deviations a data point is from the mean in a normal distribution.

Continuous Random Variable

A type of random variable that can take an infinite number of values within a given range.