Carr Co Owns 100% of the Common Shares of Ice Tops

question 38

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's retained earnings should be deducted from Carr's retained earnings.
• B)Ice Tops's 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.

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Definitions:

IQ

An abbreviation for Intelligence Quotient, a measure of an individual's cognitive abilities in relation to their age group, typically assessed by standardized tests.

Terman's Development

Pertains to the longitudinal study directed by psychologist Lewis Terman, focusing on the development and characteristics of gifted individuals throughout their lives.

Reliable

A term describing the consistency and dependability of a measurement, process, or entity.

Same Score

The condition of achieving identical numerical results in a test, game, evaluation, or assessment.