A Parent Company Uses the Equity Method to Account for Its

question 18

Multiple Choice

A parent company uses the equity method to account for its wholly-owned subsidiary.Which of the following will be a correct procedure for the Investment account?

• A)A debit for a subsidiary loss and a credit for dividends received
• B)A credit for subsidiary income and a debit for dividends received
• C)A debit for subsidiary dividends received and a credit for a subsidiary loss
• D)A credit for a subsidiary loss and a credit for dividends received

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Definitions:

Visuospatial Sketchpad

The visuospatial sketchpad is a component of the working memory model responsible for processing and manipulating visual and spatial information.

Prospective Memory

Remembering to perform a planned action or recall a planned intention at some future point in time.

Executive Control System

The brain's mechanism for managing attention, planning, regulating emotions, and executing tasks.

Short-Term Memory Capacity

The amount of information that can be held in the mind briefly, typically for about 20 to 30 seconds.