If an Interim Dividend Is Paid by a Subsidiary to Its

question 42

Multiple Choice

If an interim dividend is paid by a subsidiary to its parent, the consolidation entry to eliminate the transaction is which of the following?

• A) Dr Interim dividend paid; Cr Dividend revenue
• B) Dr Dividend revenue; Cr Interim dividend paid
• C) Dr Dividend revenue; Cr Dividend payable
• D) Dr Interim dividend paid; Cr Cash

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Definitions:

Psychogenic

Originating in the mind or in mental or emotional processes; having a psychological rather than a physiological cause.

Head Injury

Physical trauma to the head, which can lead to various levels of brain injury, ranging from mild concussions to severe brain damage.

Emotional Shock

A psychological condition arising in response to a terrifying or traumatic event, causing a strong emotional impact.

Decay Theory

A theory suggesting that memory fades due to the mere passage of time unless it is actively rehearsed.