When a Subsidiary Declares a Final Dividend Payable to a Parent

question 30

Multiple Choice

When a subsidiary declares a final dividend payable to a parent who has a 100% interest in the subsidiary, the parent recognises a dividend receivable and the subsidiary recognises a dividend payable. In addition to the elimination of these two items on consolidation, the following items must also be eliminated:

• A) Dividend revenue and Cash.
• B) Dividend declared and Cash.
• C) Dividend declared and Dividend revenue.
• D) Dividend declared and Retained earnings.

---

Definitions:

Recording Sessions

A process or period during which audio, musical performances, or other sounds are captured electronically for reproduction or broadcast.

Democratic Child-Rearing

A parenting style that encourages children to participate in decision making, fosters independence and responsibility, and emphasizes mutual respect.

Emotional Security

A state of feeling safe, stable, and free from fear or anxiety, often seen as essential for healthy psychological development.

Q-Sort Technique

The Q-Sort Technique is a method used in psychology to measure an individual's personality traits, attitudes, or beliefs, where subjects sort a set of statements in order from most to least characteristic of themselves.