During the Current Year a Partly Owned Subsidiary Has Made

question 18

Multiple Choice

During the current year a partly owned subsidiary has made a transfer from retained earnings to a general reserve.Which of the following lines would appear in the NCI journal relating to the current year transfer?

• A)DR NCI
• B)DR Retained earnings
• C)CR General reserve
• D)CR Transfer to general reserve

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Definitions:

Profitability

Profitability is a measure of the efficiency and financial success of a business or project, indicated by the ability to generate income greater than its expenses and costs.

Times Interest Earned

Times interest earned is a financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Interest Expense

The cost of borrowing money.

Income Tax Expense

The cost associated with income taxes owed to federal, state, or local governments, recognized in the accounting period in which the income was earned.