Which of the Following Statements Is Not Correct

question 14

Multiple Choice

Which of the following statements is not correct?

• A) Percentage of control is the term used to reflect the degree of dependency in which a parent company holds its subsidiaries or associates.
• B) The percentage of control is used to determine the consolidation method in establishing the consolidated financial statements.
• C) The percentage of control held by a parent is always equal to the percentage of interest it holds in a given subsidiary or associate.
• D) The percentage of interest is used in the process of consolidation of accounts and calculations to define majority and minority interests.

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Definitions:

Assess External

The process of evaluating factors outside of an organization that could impact its performance, including market trends, economic conditions, and competitive landscape.

Compile Budget

The process of creating a budget by aggregating financial estimates and planning expenditures.

Gather Opinion

Gathering opinion involves collecting views, preferences, and feedback from a group of people to inform decision-making or gauge public sentiment.

Evaluate Risk

The process of identifying and analyzing potential issues that could negatively impact key business initiatives or projects.