1.1 If less than 100% of a subsidiary’s share capital has been acquired then what is the rule for inclusion of the subsidiary’s assets on the consolidated balance sheet? (1)
A. Only a proportional amount should appear
B. All the assets should appear
C. None can appear until all the shares have been acquired
D. Half the value should appear.
1.2 Identify the option that best describes consolidated financial statements. (1)
A. Consolidated Statement of financial Position and Comprehensive Income
B. Financial Statements of a Group presented as a single entity.
C. Consolidated Cash flow Statement
D. Consolidated Comprehensive Income.
1.3 What is the term used to describe dividends paid by one company in the group to another in the same group? (1)
A. Group dividends
B. Intergroup dividends
C. Intragroup dividends
D. Interim dividends
1.4 The claim by outsiders to assets featured on a consolidated balance sheet is known as_________. (1)
A. Negative goodwill
B. Minority interest
C. Wholly owned subsidiary
D. Subsidiary
1.5 When a parent-subsidiary relation exists, consolidated financial statements are prepared in recognition of the accounting concept of__________. (1)
A. Reliability
B. Materiality
C. Legal entity
D. Economic entity
A. Only a proportional amount should appear
B. Financial Statements of a Group presented as a single entity.
C. Intragroup dividends
B. Minority interest
D. Economic entity