Multiple Choice Questions
1. The percentage of interest
(a) Is used to define the dependency link
(b) Is used to decide about the inclusion of a company in the consolidation scope
(c) Reflects the interests that are controlled directly and indirectly
(d) None of these
2.

In the situation described in the diagram above, the percentage of control (voting rights) of P in C2 is
(a) 10%
(b) 20%
(c) 30%
(d) 27%
(e) None of these
3. In the diagram of question 2 above, the percentage of interest (ownership, stake) is
(a) 10%
(b) 20%
(c) 30%
(d) 27%
(e) None of these
4. Non-controlling interests can be reported (several possible answers)
(a) As a part of shareholders€™ equity
(b) As a part of long-term liabilities
(c) As a part of current liabilities
(d) Between shareholders€™ equity and long-term liabilities
(e) As a negative liability within financial fixed assets
(f) None of these
(g) All of these
5. Associate and affiliate are often considered as synonymous
(a) True
(b) False
6. The only possibility to hold control of a company is to own more than 50 percent of the voting rights of this entity
(a) True
(b) False
7. Non-controlling interests are reported when which method is used?
(a) Full consolidation
(b) Equity method
(c) Proportionate consolidation
(d) None of these
8. Goodwill is the difference between the purchase price (cost of investment) of shares and the book value of these shares
(a) True
(b) False
9. In the case of a joint venture, the appropriate consolidation technique is the proportionate consolidation.
(a) True
(b) False
10. The equity method should be used when the percentage of control is more than 30 percent and less that 50 percent
(a) True
(b) False

Transcribed Image Text:

70% Cl 10% C2 20%