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.

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Definitions:

Expected Frequencies

The predicted counts of occurrences in each category of a variable, based on a probability model or the distribution of the population.

Level of Education

Refers to the highest degree or stage of formal learning that an individual has completed.

Significant Change

A statistically determined change in data or results that is unlikely to have occurred by chance alone, indicating a meaningful difference or effect.

Proportions

A comparison of a part of a whole in terms of a simple ratio or fraction, often expressed as a percentage.