If an Entity Presents Both Consolidated Financial Statements and Parent

question 11

Multiple Choice

If an entity presents both consolidated financial statements and parent entity financial statements in the same financial report, it must present:

• A) segment data only on the basis of the parent entity financial statements;
• B) segment data only on the basis of the consolidated financial statements;
• C) condensed segment data that includes revenue information only;
• D) segment information on the basis of both the consolidated and the parent financial information.

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Definitions:

Past Obligation

Obligations or duties that were required or expected to be fulfilled in the past.

Additional Consideration

Additional consideration involves extra benefits or compensation provided beyond the initial agreement, often to amend or enhance a contract.

Implied Contract

A contract formed in whole or in part from the conduct of the parties, rather than from written or spoken words.

Modified Amount

An adjusted sum of money that has been changed from its original figure for specific reasons or conditions.