Z Company Has Included in Its Consolidated Financial Statements This

question 17

Multiple Choice

Z Company has included in its consolidated financial statements this year a subsidiary acquired several years ago that was appropriately excluded from consolidation last year. This results in:

• A)An accounting change that should be reported prospectively.
• B)A correction of an error.
• C)An accounting change that should be reported by restating the financial statements of all prior periods presented.
• D)Neither an accounting change nor a correction of an error.

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Definitions:

Depolarization

The process by which a cell's membrane potential becomes less negative, leading to an action potential in nerve and muscle cells.

Repolarization

The process by which a cell's membrane returns to its resting potential after depolarization.

Threshold

The minimum level of stimulus needed to activate a physiological response or sensation.

Depolarization

A process where the electrical charge of a cell's membrane becomes less negative, leading to the activation of the cell, often referring to nerve or muscle cells.