Which of the Following Accurately Reflects the Accounting for Non-Consolidated

question 29

Multiple Choice

Which of the following accurately reflects the accounting for non-consolidated subsidiaries in Japan?

• A) Cross-holdings of related companies makes it difficult to identify a parent company.
• B) Japanese companies are not permitted to use the equity method.
• C) Keiretsu relationships usually have a bank as the major shareholder in related companies.
• D) Earnings and assets of Japanese companies tend to be overstated due to the inclusion of group members in consolidated financial statements.

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Definitions:

Educational Level

A measure of the highest degree or level of education an individual has completed.

Threshold

The minimum level of stimulation or the level at which a certain effect begins to be produced, often used in economics, psychology, and physical sciences.

Grades

Levels of quality or performance, often used to categorize or rank things such as academic results or material purity.

Employers

Individuals or organizations that hire and pay employees for their labor.