If a parent has some control over a subsidiary but the subsidiary is not consolidated, the subsidiary is accounted for as

A.an investment.

B. a liability.

C a fixed asset.

D None of the above

Which of the following is not a proper use of notes?

A. To indicate the basis for asset valuation.

B To describe the nature and effect of a change in accounting principle, such as from FIFO to LIFO.

C To describe a firms debt.

D To correct an improper financial statement presentation.

Which of the following is a recurring item?

A Extraordinary gain

B Error of a prior period

C Cumulative effect of change in accounting principle

D Equity in earnings of nonconsolidated subsidiaries

Which of the following is not considered an intangible asset?

A Prepaid advertising expenses

B Goodwill

C Customer lists

D Memberships