Where a Subsidiary Has Declared but Not Paid a Dividend

question 11

Multiple Choice

Where a subsidiary has declared but not paid a dividend on a cum-dividend basis on acquisition date,the amount of the dividend must be recorded by the parent company as:

• A) revenue.
• B) a reduction in the cost of the investment.
• C) a reduction in the amount of goodwill on consolidation.
• D) none of the above,

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Definitions:

Limestone

A sedimentary rock consisting mainly of calcium carbonate, often used in building materials and sculptures for its ease of carving and durability.

Female Form

The representation of women's bodies in art and sculpture, often celebrated for its aesthetic, symbolic, and cultural significance.

Detailed

Descriptive of something that is elaborated with many intricate and precise elements or aspects, providing a thorough and comprehensive representation.

Skara Brae

A well-preserved Neolithic settlement located in the Orkney archipelago of Scotland, dating back to around 3180 BCE to 2500 BCE.