Which of the Following Is NOT an Acceptable Way of Reporting

question 60

Multiple Choice

Which of the following is NOT an acceptable way of reporting for a not-for-profit entity over which an organization has control?

• A) By consolidating the controlled organization in its financial statements.
• B) By providing the disclosure set out in paragraph 4450.22 of the Handbook.
• C) If the controlled organization is one of a large number of individually immaterial organizations, by adhering to the disclosure requirements set out in paragraph 4450.26 of the CPA Canada Handbook.
• D) By using the equity method.

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Definitions:

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service versus the total amount they actually pay.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total benefit to society from the production and consumption of goods or services.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, opposite to a normal good.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefit to society from the production and consumption of goods and services.