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:

Digestive System

A group of organs responsible for the breakdown and absorption of food, and the elimination of waste.

Stomach

An organ of the digestive system responsible for breaking down food through mechanical movements and gastric acid secretion.

Hemorrhoids

Swollen veins in the lower rectum and anus, often causing discomfort, pain, and bleeding.

Distended Veins

Veins that are enlarged and swollen, often indicative of an underlying medical condition.