If in the Consolidation Process the Investment in Subsidiary Account

question 12

Multiple Choice

If in the consolidation process the investment in subsidiary account is increased or decreased by the amount determined by the following calculation: $$\text { (Parent ownership percentage } ) \times ( \text { Current balance in subsidiary retained eamings minus the subsidiary's retained eamings balance on the date of acquisition } )$$ the investment account is being converted from

• A)cost to simple equity.
• B)cost to sophisticated equity.
• C)simple equity to sophisticated equity.
• D)simple equity to cost.

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Definitions:

Compulsion

An irresistible urge to perform certain behaviors repeatedly, often as a way to reduce anxiety or distress.

Obsession

A persistent, intrusive, and unwanted thought that causes significant distress or anxiety.

Dissociative Disorders

A group of mental disorders characterized by an involuntary escape from reality involving a disconnection between thoughts, identity, consciousness, and memory.

Consciousness

Everything of which we are aware at any given time-our thoughts, feelings, sensations, and perceptions of the external environment.