ABC Company Owns 75% of XYZ Company

question 43

Multiple Choice

ABC Company owns 75% of XYZ Company. During 2012, XYZ Company declared and paid $5,000 in dividends. What impact did this transaction have on the separate financial statements of ABC Company?

• A)Total assets were increased
• B)Net income was decreased.
• C)Investment account for XYZ Company was decreased.
• D)All of the above.

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Definitions:

Small Claims Court

A judiciary designed to resolve disputes involving relatively small financial amounts in a more informal, faster, and less expensive manner than traditional court systems.

Superior Trial Level Court

A high-level court that handles both civil and criminal cases, often involving serious matters or large sums of money.

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A formal method or series of actions conducted in a particular order or manner to achieve a legal task or to process legal actions.

Executive Branch

The segment of government responsible for implementing and enforcing laws, typically headed by the president or prime minister.