What is the meaning of "control"?
A)The power to participate in the financial and operating policy decisions of the investee.
B)The power to govern the financial and operating policies of an entity.
C)The power to share in strategic decisions affecting an entity.
D)The power to sell the shares of an entity.

Question

Quizplus · Accepted Answer

According to accounting standards, "control" refers to the power to govern the financial and operating policies of an entity. This means having the ability to make decisions that significantly affect the entity's activities and outcomes. Option A refers to "joint control," while option C refers to "significant influence." Option D is not related to the concept of control in accounting.

What Is the Meaning of "Control