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Change in reporting entity?


Which of the following describes a change in reporting entity?
a) a comapny acquires a subsidiary that is to be accounted for as a purchase.
b) a manufacturing company expands its market from regional to nationwide.
c) a company divests itself of a European branch sales office.
d) Changing the companies included in combined financial statements.

My choice is a ) since the acquired subsidiary must now report to the company that purchased it.

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