The Key Characteristic That Determines When Consolidated Financial Statements Should

question 48

Multiple Choice

The key characteristic that determines when consolidated financial statements should be prepared is:

• A) the existence of transactions between the entities.
• B) control.
• C) substance over form.
• D) significant influence.

---

Definitions:

PST

Provincial Sales Tax; a tax levied by certain provinces in Canada on the sale of goods and services.

Percentage

A percentage is a way of expressing a number as a fraction of 100, used to describe proportions and changes in quantities.

Value

The worth or importance of something, often determined by its utility, scarcity, or demand.

HST

Harmonized Sales Tax, a combined tax that includes both federal and provincial sales taxes, applied in some regions of Canada.