If a Subsidiary's Reporting Date Does Not Coincide with the Parent

question 29

Multiple Choice

If a subsidiary's reporting date does not coincide with the parent entity's reporting date, adjustments must be made for the effects of significant transactions that occur between the two reporting dates provided the reporting dates differ by no more than:

• A) nine months.
• B) three months.
• C) one month.
• D) six months.

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Definitions:

Recession

A period marked by a significant decline in economic activity across the economy, lasting for several months or more, visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

World War II

A global conflict that took place from 1939 to 1945, involving most of the world's nations and marked by significant events that shaped modern history.

Decade

A span lasting a decade.

Roosevelt Administration

The period of U.S. governance under President Franklin D. Roosevelt from 1933 to 1945, known for the New Deal programs.