In Which of the Following Situations Do Accounting Standards Not

question 32

Multiple Choice

In which of the following situations do accounting standards not require that the financial statements of the parent and subsidiary be consolidated?

• A)A corporation creates a new 100 percent owned subsidiary
• B)A corporation purchases 90 percent of the voting stock of another company
• C)A corporation has both control and majority ownership of an unincorporated company
• D)A corporation owns less-than a controlling interest in an unincorporated company

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Definitions:

Motor Vehicle Accidents

Incidents involving road vehicles that result in property damage, injury, or death.

Early Childhood

This term refers to the developmental period from birth to 8 years old, focusing on physical, cognitive, and emotional growth.

Activity Level

The degree of physical or mental activity or behavior displayed by an individual or organism.

Parents

Caregivers of offspring in their own species, responsible for providing support, education, and nurturing.