Which of the Following Accurately Reflects the Accounting for Non-Consolidated

Multiple Choice

Which of the following accurately reflects the accounting for non-consolidated subsidiaries in Japan?

A) Cross-holdings of related companies makes it difficult to identify a parent company.
B) Japanese companies are not permitted to use the equity method.
C) Keiretsu relationships usually have a bank as the major shareholder in related companies.
D) Earnings and assets of Japanese companies tend to be overstated due to the inclusion of group members in consolidated financial statements.