Constructive retirement means that bonds are retired for consolidated statement purposes because the bond investment and payable items of the parent and the subsidiary are reciprocals that must be eliminated in consolidation.

Question

Quizplus · Accepted Answer

Constructive retirement is a process in which bonds are retired for consolidated statement purposes, as the investment and payable items of the parent and subsidiary are reciprocals that must be eliminated during consolidation. Therefore, the statement is true.

Constructive Retirement Means That Bonds Are Retired for Consolidated Statement