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

If a parent has some control over a subsidiary but the subsidiary is not consolidated, it is accounted for as an investment. This means the parent company owns equity in the subsidiary and reports it as such on its balance sheet, income statement, and cash flow statement.

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