A Parent Company Uses the Equity Method to Account for Its

question 18

Multiple Choice

A parent company uses the equity method to account for its wholly-owned subsidiary.Which of the following will be a correct procedure for the Investment account?

• A)A debit for a subsidiary loss and a credit for dividends received
• B)A credit for subsidiary income and a debit for dividends received
• C)A debit for subsidiary dividends received and a credit for a subsidiary loss
• D)A credit for a subsidiary loss and a credit for dividends received

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Definitions:

Interview

A formal meeting in which one or more persons question, consult, or evaluate another person, often used for the purpose of gathering information or assessing qualifications.

Competitors

refer to businesses or individuals engaged in the same industry or market vying for the same customer or market share.

Industries

Sectors of the economy that include businesses and companies engaging in similar types of productive activities.

Specific Solutions

Tailored responses or strategies designed to address particular problems or needs with precise and relevant measures.