The main evidence of control for purposes of consolidated financial statements involves:
A) possessing majority ownership
B) having decision-making ability that is not shared with others.
C) being the sole shareholder
D) having the parent company and the subsidiary participating in the same industry.

Question

Quizplus · Accepted Answer

Control for consolidated financial statements is primarily evidenced by having decision-making ability that is not shared with others, which typically involves having the power to govern the financial and operating policies of an entity.

The Main Evidence of Control for Purposes of Consolidated Financial