Can someone tell me the correct answers of this questions?
1) A arm's length transaction, which would be reflectedin the consolidated financial statements, wouldinclude:
a-A loan to the president of the subsidiary company-Incorrect
b-The purchase of material from a supplier abroad
c-The sale of fixed assets that are no longer needed to thesubsidiary- Incorrect
d-Sales of inventory to a subsidiary
2) When a partner withdraws from a partnership and theremaining partners acquire that interest:
a) This may have an effect on the liquidity of thepartnership
b) This will increase the cash flow into the partnership
c) This will always create goodwill for an amount equal to thewithdrawing partnerâs original interest in the partnership-Incorrect
d) This will cause all assets to be written down to offset theacquisition cost of the withdrawing partnerâs interest at the timeof the withdraw- Incorrect
3) The consolidation process is carriedout:
a) Every year since the entries are registered only by theparent company- Incorrect
b) Every year since the tickets are only registered by thesubsidiary company
c) Every year since the tickets are registered by both, theparent company and the subsidiary- Incorrect
d) Each year since the tickets are not registered by the parentor subsidiary
4) In a global liquidation of a company:
a) All assets are paid to partners based on their initialcontribution, with the oldest association paid first-Incorrect
b) All assets are paid to the partners on the basis of equaldistribution, regardless of when the member was admitted to theassociation
c) All assets must be made before any distribution can bemade
d) All assets are paid to the partners, at the same time, it isbased on fair market value at the time they were initially donatedto the association- Incorrect