Which of the Following Adjustments (If Any) to Retained Earnings

question 8

Multiple Choice

Which of the following adjustments (if any) to Retained Earnings is necessary for the preparation of the Consolidated Balance Sheet?

• A) Under both the Cost and Equity methods, the parent must record its share of its
• Subsidiary's income.
• B) Under both the Cost and Equity methods, the parent must record its share of its
• Subsidiary's income less any dividends received from the subsidiary.
• C) No adjustment is required under either the Cost or the Equity methods.
• D) No adjustment is required if the parent has been using the Equity Method.

---

Definitions:

Vulnerable Narcissist

A type of narcissism characterized by sensitivity to criticism and a fragile self-esteem hidden beneath a superficial self-confidence.

Narcissist Subtype

Variants within narcissism that display specific patterns of behavior or attributes, such as overt, covert, or malignant narcissism.

Histrionic Personality Disorder

Sharing features with borderline personality disorder, including rapidly shifting emotions and intense, unstable relationships, people with this disorder also behave in ways to draw attention to themselves across situations.

Psychodynamic Psychotherapists

Mental health professionals who treat psychological disorders by exploring the unconscious mind, past experiences, and interpersonal relationships.