If a Parent Company Owns 90% of a Subsidiary's Outstanding

question 61

Multiple Choice

If a parent company owns 90% of a subsidiary's outstanding shares, the parent should generally account for the subsidiary's income under the

• A) cost/amortized cost model.
• B) fair value through net income model.
• C) fair value through other comprehensive model.
• D) consolidation method.

---

Definitions:

Statistical Software

Computer programs specifically designed for performing statistical analysis on data.

Sales

A process involving the transaction of goods or services for payment between a buyer and a seller.

Profits

The net financial gain remaining after subtracting all costs, taxes, and expenses from revenue.

Simple Linear Regression

A technique in statistics that fits a linear equation to data points to model how a dependent variable changes with one independent variable.