ACCA · Financial Accounting (FA)

Subsidiaries: Practice Questions

5 multiple-choice questions marked as you go, and 3 written questions with worked solutions. All on Subsidiaries.

8 questions11 marksFree, no account

Question 1

1 mark

Which of the following best describes the Non-controlling interest in a consolidated statement of financial position?

Question 2

1 mark

In the context of group accounts, what does a subsidiary refer to?

Question 3

1 mark

Which of the following is the most common criterion for a company to be classified as a subsidiary of another company?

Question 4

1 mark

Which of the following defines Goodwill arising on the acquisition of a subsidiary?

Question 5

1 mark

In the preparation of a consolidated statement of financial position, how should intra-group receivables and payables be treated?

Question 6

2 marks

When a subsidiary is acquired part-way through a financial year, from which date should its results be included in the consolidated statement of profit or loss?

Write your answer out first, then check it against the worked solution.

Question 7

2 marks

What percentage of voting rights is typically required to presume that one entity has control over another, thereby creating a subsidiary relationship?

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Question 8

2 marks

In a consolidated statement of financial position, what is the specific term used to describe the equity in a subsidiary that is not owned by the parent company?

Write your answer out first, then check it against the worked solution.

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