Question

taxation provision made by subsidiary company will appear in the consolidated balance sheet as item of-
*Revenue profit
*minority Interest
*current liability
*None of these
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Answer 1

Answer:

revenue profit or current liability

Answer 2

Answer:

Option 3. A current liability is a correct option.

Explanation:

• Taxation provision made by the subsidiary company will appear in the consolidated balance sheet as an item of Current liability.
• Revenue Profit- From the perspective of the subsidiary company, the profit earned by the subsidiary company after acquiring control interest in the sub-subsidiary company is called revenue profit. This happens when a subsidiary company owns a sub-subsidiary company before acquiring control interest by the holding company present in the subsidiary company.
• Minority Interest- It is less than 50 percent interest or ownership of a firm or enterprise or organization. Mostly it is held by another organization or an investor.