If a parent has some control over a subsidiary but the subsidiary is not consolidated, the subsidiary is accounted for as:
A) a marketable security
B) an investment
C) a liability
D) a fixed asset
E) none of the answers are correct

Question

Quizplus · Accepted Answer

When a parent has some control over a subsidiary but does not consolidate it, the subsidiary is typically accounted for as an investment, often using the equity method if significant influence is present.

If a Parent Has Some Control Over a Subsidiary but the Subsidiary