When a Parent Uses the Equity Method Throughout the Year

question 19

Multiple Choice

When a parent uses the equity method throughout the year to account for its investment in an acquired subsidiary, which of the following statements is false before making adjustments on the consolidated worksheet?

• A) Parent company net income equals controlling interest in consolidated net income.
• B) Parent company retained earnings equals consolidated retained earnings.
• C) Parent company total assets equals consolidated total assets.
• D) Parent company dividends equals consolidated dividends.
• E) Goodwill will not be recorded on the parent's books.

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Definitions:

Anorexic

Characterizing an individual suffering from anorexia nervosa, an eating disorder marked by an obsession with weight loss and voluntary starvation.

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A chemical element and a key nutrient necessary for the production of red blood cells and the transportation of oxygen in the body.

Calcium

A mineral essential for various bodily functions, including bone formation and muscle function.

Adolescents

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