Which of the Following Does NOT Represent a Change in Reporting

question 8

Multiple Choice

Which of the following does NOT represent a change in reporting entity?

• A) Changing the companies included in combined financial statements
• B) Disposition of a subsidiary or other business unit
• C) Presenting consolidated statements in place of the statements of individual companies
• D) Changing specific subsidiaries that constitute the group of companies for which consolidated financial statements are presented

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Definitions:

Abandoned Property

refers to assets left by an owner who has no intention of returning to claim ownership.

Real Property

An area of law that deals with land and anything permanently affixed to the land, like buildings, which has stark distinctions from personal property.

Personal Property

Personal property is a category of property that includes movable items and possessions, as opposed to real property such as land or buildings.

Fixture

A thing that was originally personal property and that has been actually or constructively affixed to the soil itself or to some structure legally a part of the land.