When a USSubsidiary in Another Country Remits Profits Back to Its Parent

question 30

Multiple Choice

When a U.S.subsidiary in another country remits profits back to its parent company in the U.S.,the receipt of profits is recorded in the ________.

• A) income receipts account and given a plus sign
• B) income receipts account and given a minus sign
• C) income payments account and given a plus sign
• D) income payments account and given a minus sign

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Definitions:

Power

The capacity or ability to direct or influence the behavior of others or the course of events.

Prestige

The respect, admiration, or high regard accorded to an individual or institution, based on perceived success, abilities, or quality.

Social Status

The position or rank of a person or group within the societal hierarchy, often determined by wealth, occupation, or family lineage.

Minimum Wage

The lowest legal salary that employers can pay their employees, established by government laws to ensure a basic living standard for workers.