In a multiple consolidation,the ownership interests of subsidiaries are determined using:
A) direct ownership interests.
B) indirect ownership interests.
C) both direct and indirect ownership interests.
D) none of the above.

Question

Quizplus · Accepted Answer

In a multiple consolidation, both direct and indirect ownership interests are used to determine the ownership interests of subsidiaries. Direct ownership interests refer to the shares of a subsidiary directly owned by the parent company, while indirect ownership interests refer to the shares of a subsidiary owned by another subsidiary that is, in turn, owned by the parent company. By considering both types of ownership interests, the multiple consolidation provides a more comprehensive picture of the parent company's control over its subsidiaries.

In a Multiple Consolidation,the Ownership Interests of Subsidiaries Are Determined