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.

Comprehend the impact of average fixed and variable costs on the firm's decision to produce or shut down in the short run.

Understand the significance of increasing health literacy among college students.

Comprehend the psychosocial and health consequences of campus violence and sexual harassment among college students.

Recognize the importance of health psychology in preventing diseases rather than treating them.

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Definitions:

Series Of Data

A sequence of data points, typically measured and collected over intervals of time.

Informative Titles

These are titles designed to clearly and succinctly convey the main topic or content of a work, making it easier for readers to understand what to expect.

Informative Title

Title that highlights the conclusion to be drawn from the data.

Demand Grows

The increase in consumer desire or need for a particular product or service over time.