A Parent Company Can Record an Investment in Its Subsidiary

question 26

Multiple Choice

A parent company can record an investment in its subsidiary under either the cost or equity method.Which of the following statements about consolidated net income is true?

• A)Consolidated net income is higher if the parent company uses the equity method rather than the cost method.
• B)Consolidated net income is higher if the parent company uses the cost method rather than the equity method.
• C)Consolidated net income is higher if the parent company uses the equity method only if the subsidiary is profitable and has not paid any dividends.
• D)Consolidated net income is the same under both methods.

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Definitions:

Patients

Individuals receiving medical treatment or care.

E-Prescribing

The digital generation, transmission, and filling of a medical prescription, bypassing the need for handwritten paper prescriptions.

Medication Management

The oversight and coordination of a patient’s medications to ensure they are used safely and effectively.

Patient Portal

An online platform that gives patients access to personal health information, allowing for communication with healthcare providers and management of care.