What is (are)the reason(s)for the lack of representativeness of the unconsolidated accounts of the parent company when the parent company is a pure holding?
A) The income statement of the holding company does not include any of the traditional items such as 'sales revenue','cost of goods sold' or 'purchases'.
B) Revenues are essentially comprised of "management fees" and "investment income" which is the sum of all dividends received.
C) The balance sheet of the holding company probably does not include any significant amounts under accounts receivable,accounts payable,and inventories.
D) All of these

Question

Quizplus · Accepted Answer

All of the given options are reasons for the lack of representativeness of the unconsolidated accounts of the parent company when the parent company is a pure holding. The holding company typically does not have any sales revenue, cost of goods sold or purchases to report, and its revenues are mostly comprised of management fees and investment income in the form of dividends received. Additionally, the balance sheet of a pure holding company usually does not show significant amounts under accounts receivable, accounts payable, and inventories.

What Is (Are)the Reason(s)for the Lack of Representativeness of the Unconsolidated