CIMA Exam CIMAPRA19-F01-1 Topic 2 Question 11 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 11
Topic #: 2

Which of the following is an effect of using equity accounting to include an entity in the consolidated statement of financial position of a group?

AA single figure is included in net assets which is the sum of the initial cost of investment in the investee entity plus the group share of all changes in net assets since acquisition.

B100% of each asset and liability of the investee entity is included with the investing entity's balances.

CThe group share of each asset and liability of the investee entity is included with the investing entity's balances.

DThe investment in the investee entity is included in non-current assets at cost to the investing entity.

Show Suggested Answer

Suggested Answer: A

by Layla at May 08, 2022, 01:29 AM

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