Which of the Following Is True of the Consolidation Process

question 15

Multiple Choice

Which of the following is true of the consolidation process?

• A)​Even though the initial accounting for asset acquisitions and 100% stock acquisitions differs, the consolidation process should result in the same balance sheet.
• B)​Account balances are combined when recording a stock acquisition so the consolidation is automatic.
• C)​The assets of the non-controlling interest will be predominately displayed on the consolidated balance sheet.
• D)​The investment in subsidiary account will be displayed on the consolidated balance sheet.

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Definitions:

Regio-

A prefix indicating the region or position in a molecule where a chemical reaction occurs.

Major Organic

Pertaining to the primary or most significant carbon-containing compounds studied within organic chemistry.

Carbanion

A negatively charged ion (anion) that consists of a carbon atom having a pair of non-bonded electrons.

Free Radical

Highly reactive atoms or molecules with an unpaired electron, involved in various chemical reactions.