Which of the Following Adjustments Is Not a Cumulative Operations

question 32

Multiple Choice

Which of the following adjustments is not a cumulative operations adjustment in the consolidation process?

• A)Recognize the NCI's share of the subsidiary's retained earnings from the acquisition date to the beginning of the year of the consolidated financial statements.
• B)Eliminate the gains and losses from intercompany transactions that have not been realized at the beginning of the year of the consolidated financial statements.
• C)Eliminate the flow-through to retained earnings of fair-valued assets and liabilities on intercompany transactions that have since been sold to external parties.
• D)Recognize the NCI in earnings.