When a Parent Uses the Partial Equity Method Throughout the Year

question 99

Multiple Choice

When a parent uses the partial equity method throughout the year to account for its 80% investment in an acquired subsidiary, which of the following statements is true at the date immediately preceding the date on which adjustments are made on the consolidated worksheet?

• A) Parent company net income equals 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 equal consolidated dividends.
• E) Goodwill is recorded on the parent's books.

Assess and correct definitions that violate clarity and precision.

Grasp the significance of context in determining whether a definition is too broad or too narrow.

Analyze the impact of word choice on definition clarity and precision.

Distinguish between metaphorical and literal language in definitions.

---

Definitions:

Psychological Objections

Refers to the mental barriers or reservations potential customers might have against purchasing a product or service, often based on emotional factors or personal biases.

Direct Denial

A straightforward refusal or rejection of a request, claim, or offer without providing an alternative or compromise.

Handle Objections

Refers to the process by which salespeople overcome customer concerns or hesitations regarding a product or service.

No-Need Objection

An objection in which the prospect declares he or she does not need the product and implies the end of the selling effort, but which may actually be either a hidden or a stalling objection.