What Is (Are)the Reason(s)for the Lack of Representativeness of the Unconsolidated

question 12

Multiple Choice

What is (are) the reason(s) for the lack of representativeness of the unconsolidated accounts of the parent company when the parent company is a pure holding?

• A) The income statement of the holding company does not include any of the traditional items such as 'sales revenue','cost of goods sold' or 'purchases'.
• B) Revenues are essentially comprised of "management fees" and "investment income" which is the sum of all dividends received.
• C) The balance sheet of the holding company probably does not include any significant amounts under accounts receivable,accounts payable,and inventories.
• D) All of these

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Definitions:

Excess Demand

A market condition in which the quantity demanded of a product exceeds the quantity supplied at a given price.

Nonprice Ration

Distributing or allocating goods based on criteria other than price, such as need or merit.

Short Run

A period in which at least one input (such as plant size) is fixed, and only the variable inputs can be adjusted.

Price System

An economic mechanism that uses prices arising from supply and demand interactions to communicate information to help guide the allocation of resources.