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

---

Definitions:

Emotional Manipulation

The act of influencing another person's feelings and behaviors for one's personal interest through deceitful, unfair, or underhanded tactics.

Objective Evidence

Data, records, or facts that are observable and measurable, independent of personal feelings, assumptions, or interpretation.

Persuasive Messages

Written or verbal communication intended to influence the attitudes, beliefs, or actions of others through logical or emotional appeals.

Psychographics

The study and classification of people according to their attitudes, aspirations, and other psychological criteria, often used in marketing.