If the goods are sold by subsidiary to parent at cost price and the goods still in the parent's stock in its balance sheet, what should the consolidated treatment be? Select one: O a. Parent needs to cancel out the transaction from its account. b. No adjustment should be done on both accounts. O c. No adjustment should be done on parent's account. d. Parent and subsidiary need to cancel out the transaction from their accounts. Parent owns 65% of subsidiary. Which of the following statements is NOT correct? Select one: O a. Investment in Subsidiary is eliminated in the consolidated financial statement O b. Retained earnings of P is eliminated in the consolidated financial statement. O c. Ordinary shares account of subsidiary is eliminated in consolidated financial statement. O d. Shares premium of subsidiary is eliminated in the consolidated financial statement. Consolidated financial statements are primarily intended to which of the following? Select one: O a. Management of the parent company b. Creditors of the parent company O c. Bureau of Internal Revenue O d. Stockholders' of parents In the consolidated financial statement of a Parent who acquired 90% of the ordinary shares of the subsidiary, which statement are FALSE? Select one or more: a. Consolidated shareholder's' is composed of shareholders' of P b. Consolidated cash is composed of book value of Parent and fair value of subsidiary c. Consolidated shareholder's' is composed of shareholders' of P and the non-controlling interest of S d. Consolidated liabilities is composed of fair value of Parent and fair value of subsidiary When a corporation acquires 51% of the ordinary shares of another company, which of the following statement are TRUE? Select one or more: a. After the acquisition, the acquirer gains control over the other company b. After the acquisition, the acquiring company gains no control over the other company c. After the acquisition, there are still two separate legal entity. d. After the acquisition, the subsidiary is required to prepare a consolidated financial statement