The Statements of Financial Position for Company P and Company

question 22

Multiple Choice

The Statements of Financial Position for company P and company C are shown below:

At the time of the acquisition,the net asset value of C was £100,000.This was made up entirely of £100,000 share capital.If company P owns 100% of Company C,then the consolidated Statement of Financial Position will show a Total Assets figure of:

• A) £830. This is made up of 100% of the assets of P and C and the investment of P in C
• B) £630. This is 100% of the assets of P and C excluding the investment of P in C
• C) £730. This is made up of 100% of the assets of P and C and the goodwill on the investment of P in C
• D) £585. This is made up of 100% of the assets and liabilities of P and C

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Definitions:

Outside A Class

Refers to code or functions that are defined or executed outside of a class definition in object-oriented programming.

Formal Parameter Lists

Specifies the variables that a function or method accepts as input, defining the type and order of arguments it can receive.

Different Number

A number that is distinct or not equal compared to other numbers in a specific context.

Data Types

Classification of data items based on the kind of values they hold and the operations that can be performed on them.