Which Statement Is Correct About an Associate

question 94

Multiple Choice

Which statement is correct about an associate?

• A)An arrangement where one party has the power to participate in the financial and operating policy decisions of another entity.
• B)An arrangement where one entity governs the financial and operating policies about another entity.
• C)A contractual arrangement whereby two or more parties share control over an economic activity and all strategic decisions requires unanimous consent by all parties.
• D)An arrangement that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity.

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Definitions:

Nonprofit

A type of organization that uses its surplus revenues to further achieve its purpose or mission, rather than distributing its income to the organization's shareholders, leaders, or members.

Government Grant

Financial assistance provided by government agencies to individuals, organizations, or businesses to support activities or projects beneficial to the public.

Grants

Non-repayable funds or products bestowed by one entity (often a government body, corporation, or foundation) to a recipient, typically for a particular purpose or project.

Contracts

Legal agreements between two or more parties that are enforceable by law.