Carr CoOwns 100% of the Common Shares of Ice Tops Ltd

question 14

Multiple Choice

Carr Co.owns 100% of the common shares of Ice Tops Ltd.Carr records its investment in Ice Tops using the cost method.Carr and Ice Tops have transactions with each other.In preparing Carr's consolidated financial statements,which of the following should be done?

• A)Ice Tops' retained earnings should be deducted from Carr's retained earnings.
• B)Ice Tops' share capital should be added to Carr's share capital.
• C)Dividends received by Carr from Ice Tops should be deducted from Carr's dividend income.
• D)Carr's receivable from Ice Tops should be netted with Carr's accounts receivable.

---

Definitions:

Personality Characteristics

Traits that describe an individual's consistent patterns of thought, feeling, and behavior.

Dynamic Traits

Traits that describe our motivations and interests.

Temperament

Innate aspects of an individual's personality, such as sensitivity, mood, activity level, and emotional reactivity.

Driving Forces

The underlying motivations or reasons that propel individuals towards certain actions or behaviors.