If the Parent Company Used the Equity Method to Account

question 41

Multiple Choice

If the parent company used the equity method to account for its investment and the subsidiary company showed a profit for the past year, the consolidation elimination entry required to remove a subsidiary's income from the parent's books prior to the preparation of Consolidated Financial statements would be:

---

Definitions:

Resigned President

A president who has voluntarily stepped down from office before the completion of their term.

Impeached

The process by which a legislative body formally levels charges against a high official of government, implying an accusation but not a conviction.

Watergate

Washington office and apartment complex that lent its name to the 1972–1974 scandal of the Nixon administration; when his knowledge of the break-in at the Watergate and subsequent cover-up were revealed, Nixon resigned the presidency under threat of impeachment.

Busing Issue

Refers to the controversies and policies related to the transportation of students to schools outside their local neighborhoods to achieve racial desegregation in the United States.