'If There Are No Intra-Group Transactions and No Goodwill or Discount

question 8

Multiple Choice

'If there are no intra-group transactions and no goodwill or discount on acquisition, the consolidated financial statements are an aggregate of those financial statements of the companies in a group.' This statement is:

• A)true, because only intra-group transactions need to be considered in the preparation of group financial statements
• B)false, because assets and equity of the group would be overstated
• C)true, because only intra-group transactions and adjustments for differences on acquisition need to be considered in the preparation of group financial statements
• D)false, because assets and equity would be understated

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Definitions:

Pipeline Safety

Measures and protocols implemented to ensure the secure and efficient transportation of goods through pipelines, minimizing the risk of accidents or leaks.

Team Selling

A sales strategy where multiple individuals within an organization work together to close sales and manage client accounts, leveraging the diverse skills of the team.

Major Customers

The most important or significant clients to a business, usually accounting for a large portion of the company's revenue.

Servicing

The process of maintaining or repairing a product or fulfilling the terms of a service agreement.