Assuming there have been no intercompany transactions, which of the following is an incorrect statement concerning the financial statement or statements of a parent and its 60% owned subsidiary? * a. Consolidated financial statements would include 100% of the assets and liabilities of the subsidiary. b. Answer not given c. If the parent does not prepare consolidated financial statements, it must use the equity method of accounting. d. Net income of the parent would be the same whether or not consolidated statements were prepared. e. The non-controlling interest in net assets would not be shown on the consolidated balance sheet
Assuming there have been no intercompany transactions, which of the following is an incorrect statement concerning the financial statement or statements of a parent and its 60% owned subsidiary? * a. Consolidated financial statements would include 100% of the assets and liabilities of the subsidiary. b. Answer not given c. If the parent does not prepare consolidated financial statements, it must use the equity method of accounting. d. Net income of the parent would be the same whether or not consolidated statements were prepared. e. The non-controlling interest in net assets would not be shown on the consolidated balance sheet
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter14: Intercorporate Investments In Common Stock
Section: Chapter Questions
Problem 19E
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Assuming there have been no intercompany transactions, which of the following is an incorrect statement concerning the financial statement or statements of a parent and its 60% owned subsidiary? *
a. Consolidated financial statements would include 100% of the assets and liabilities of the subsidiary.
b. Answer not given
c. If the parent does not prepare consolidated financial statements, it must use the equity method of accounting.
d. Net income of the parent would be the same whether or not consolidated statements were prepared.
e. The non-controlling interest in net assets would not be shown on the consolidated
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