Ask Question
27 July, 21:42

Best Appliances owns 90% of the voting stock of Wratchet, Inc. Which of the following is true? A. Wratchet would be considered the parent entity. B. Best would be considered the parent entity. C. The financial statements of Best would be consolidated into Wratchet. D. Both a and c are correct.

+3
Answers (1)
  1. 28 July, 00:33
    0
    B. Best would be considered the parent entity.

    Explanation:

    When a company owns another companies stock of 90% or more it would be considered as parent entity. The parent entity can control the the subsidiary. The financial statements will be consolidated into parents companies accounts.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Best Appliances owns 90% of the voting stock of Wratchet, Inc. Which of the following is true? A. Wratchet would be considered the parent ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers