Which of the following statements is incorrect?Group of answer choicesconsolidated profit arises only in relation to transactions with entities external to the group.consolidated liabilities are obligations to entities external to the group.consolidated revenues are earned only from transactions with entities external to the group.consolidated assets are recorded at the cost to the legal entity that owns them.

Which of following statements is not correct in relation to the consolidation process?Group of answer choicesTo avoid double counting of the group's equity, the equity of the subsidiary at the acquisition date needs to be eliminated from the records of the subsidiary.Subsequent to the acquisition date, any intragroup transactions within the group needs to be adjusted and eliminated.The fair value adjustments of assets that were not previously recorded by the subsidiary are recognised in the business combination valuation entries.Consolidated financial statements should offset the carrying amount of the parent's investment in the subsidiary.

Which of the following statements about consolidated financial statements is true? Group of answer choicesThe subsidiaries of corporations cease to be separate legal entities when their parent corporations use consolidated financial statements.Generally, most of the voting stock of a subsidiary should be owned by the holding company or by the same interests if the associated companies’ financial statements are to be combined.Consolidated financial statements are required of all companies in the United States.Consolidated financial statements make footnotes unnecessary.

Which ONE of the following statements is CORRECT?a.In the absence of any provision in the contract that regulates how partners will share in the profit, a division of assets upon dissolution is made in proportion to the partners’ respective contributions to the enterprise.b.The assets of the partnership do not belong to the partners, but to the partnership.c.In the absence of any provision in a contract that regulates how partners share in the net profit or loss of the partnership, the net profit or loss is shared equally by all the partners.d.The natural consequences of a contract are those consequences which apply to a particular type of contract by choice of the parties to that contract.

Which of the following statements is correct? Group of answer choices Adjusting entries are not necessary if the trial balance debit and credit columns balances are equal. Profit will always be greater under the cash basis of accounting than under the accrual basis of accounting. Accrued revenues are revenues that have been received but not yet earned. Asset prepayments become expenses when they expire.

Which of the following statements is incorrect?Group of answer choicesA bargain purchase gain arises when the purchase consideration is greater than the FVINA acquired.When a subsidiary has existing goodwill in their books at the date of acquisition, the amount of FVINA will decrease in the acquisition analysis.The Investment in subsidiary account is always eliminated on consolidation and this account will always be equal to zero for the group.If a company acquires shares in a subsidiary cum div, consolidation adjusting entries are required to eliminate dividend payable and dividend receivable up until the dividend is paid by the subsidiary.