The Key Characteristic That Determines Which Entities Financial Statements Should

question 18

Multiple Choice

The key characteristic that determines which entities financial statements should be combined into a set of consolidated financial statements is:

• A)the existence of transactions between the entities
• B)control
• C)substance over form
• D)access to the financial statements of each entity that is to be combined.

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Definitions:

Job Characteristics Approach

A theory that suggests jobs can be designed with specific characteristics to increase employee motivation and satisfaction.

Feedback

Information given to a person or group about their behavior, performance, or product, used as a basis for improvement.

Task Identity

The degree to which a job requires completion of a whole and identifiable piece of work, meaning the employee can see the outcome of their efforts.

Skill Variety

describes the degree to which a job requires a range of different activities and skills for its completion, contributing to employee satisfaction and motivation.