From the Standpoint of Accounting Theory,which of the Following Statements

question 29

Multiple Choice

From the standpoint of accounting theory,which of the following statements is the best justification for the preparation of consolidated financial statements?

• A)In substance the companies are separate,but in form the companies are one entity.
• B)In substance the companies are one entity,but in form they are separate.
• C)In substance and form the companies are one entity.
• D)In substance and form the companies are separate entities.

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Definitions:

Behavioral Approach

A method focusing on observable and measurable aspects of human behavior, especially in understanding and managing personnel.

Task Behaviors

Refers to the actions and activities an individual undertakes as part of their job role to accomplish organizational objectives.

Relationship Behaviors

Refers to the actions and interactions between individuals within any form of a relationship, affecting the dynamics and outcomes of the relationship.

Directive And Supportive

A leadership approach that combines providing clear instructions and guidance (directive) with offering encouragement and emotional support (supportive).