What Is the Primary Accounting Difference Between Accounting for When

question 58

Multiple Choice

What is the primary accounting difference between accounting for when the subsidiary is dissolved and when the subsidiary retains its incorporation?

• A) If the subsidiary is dissolved, it will not be operated as a separate division.
• B) If the subsidiary is dissolved, assets and liabilities are consolidated at their book values.
• C) If the subsidiary retains its incorporation, there will be no goodwill associated with the acquisition.
• D) If the subsidiary retains its incorporation, assets and liabilities are consolidated at their book values.
• E) If the subsidiary retains its incorporation, the consolidation is not formally recorded in the accounting records of the acquiring company.

---

Definitions:

Proximity Sensor

A sensor that detects the presence or absence of an object or its distance from the sensor without physical contact.

Solar Cell

A device that converts light into electrical energy through the photovoltaic effect, commonly used in solar panels for power generation.