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Explain What Criteria Determines Whether or Not an Entity Is

question 19

Essay

Explain what criteria determines whether or not an entity is included in a set of consolidated financial statements.


Definitions:

Corporate Dividend Payout

The portion of earnings distributed to shareholders in the form of dividends.

Firm's Earnings

The profit of a company after all expenses and taxes have been deducted from revenue, indicating the company’s financial performance over a specified period.

Ex-Dividend Date

The specific date on which a declared dividend is set, after which a stock buyer is not entitled to the declared dividend.

Date of Record

This is the date set by a corporation upon which the shareholders must be on the company's books in order to receive a declared dividend or participate in corporate actions.

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