What Is the Founding Principle of Full Consolidation

question 11

Multiple Choice

What is the founding principle of full consolidation?

• A) All assets and liabilities of the subsidiary are added to those of the parent.
• B) The investment in the subsidiary is re-evaluated in the consolidated financial statements.
• C) Only part of the assets and liabilities of the subsidiary are added to those of the parent.
• D) None of these

---

Definitions:

Classical Conditioning

An educational method where two signals are consistently linked together, resulting in a reaction initially triggered by the second signal, ultimately being provoked by just the first signal.

Pavlov

A Russian physiologist known for his work in classical conditioning, famously demonstrated through experiments with dogs salivating at the sound of a bell.

US

Abbreviation for the United States, a country in North America.

UR

An unconditioned response, which is an automatic reaction to a stimulus not learned through previous exposure.