_____ A parent need not consolidate a subsidiary if
A) The subsidiary is economically independent of the parent.
B) More than 50% of the subsidiary's sales are to the parent.
C) The subsidiary's total assets are less than 10% of total consolidated assets.
D) The parent allows the subsidiary to operate freely and independently (a decentralized management philosophy).
E) None of the above.

Question

Quizplus · Accepted Answer

A parent must consolidate a subsidiary unless it does not have control, regardless of economic independence, sales, asset size, or management philosophy.

_____ a Parent Need Not Consolidate a Subsidiary If