When Preparing Consolidation Adjustment Entries to Effect a Consolidation of a Multiple

question 28

Multiple Choice

When preparing consolidation adjustment entries to effect a consolidation of a multiple subsidiary structure, intragroup transactions:

• A) are not eliminated.
• B) are partially eliminated to the extent of the ownership interest of the parent entity to each transaction.
• C) are ignored as it is impractical to attempt to determine the size of the ownership interest relating to each transaction.
• D) are eliminated in full.

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Definitions:

Socialization

The acquisition of the norms and roles expected of people in a particular society.

Norms

The unwritten rules that define acceptable behaviors within a society or group.

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A person’s preference for emotional and sexual relationships with individuals of the same gender, the other gender, or either gender.

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