In Consolidating Parent-Founded Subsidiaries, What Account Is Used to Offset

question 15

Multiple Choice

In consolidating parent-founded subsidiaries, what account is used to offset the parent company's "Investment in Subsidiary" account?

• A)Retained earnings
• B)Goodwill
• C)Paid-in-capital accounts
• D)No offset is necessary

Understand the mechanisms and effects of tradeable permit plans in environmental policy.

Analyze the legal and social challenges faced by communities affected by climate change.

Grasp the constitutional requirements for legal standing in environmental lawsuits.

Recognize the moral and religious perspectives on environmental protection.

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Definitions:

Decrease Side

The side of an accounting equation or ledger where decreases in assets, expenses, or dividends are recorded, often the credit side for assets and the debit side for liabilities and equity.

Asset Account

A category within the general ledger that reports the value of a company's assets such as cash, equipment, and property.

Liability Account

An accounting record that reports the amounts a company owes to creditors and other parties, often categorized as current or long-term.

Owner's Equity Account

Represents the total amount of capital the owner has in a business after liabilities have been subtracted from assets.