Which of the Following Entries Would Not Require an Eliminating

question 37

Multiple Choice

Which of the following entries would not require an eliminating entry when one is preparing consolidated financial statements?

• A) Amount owed by subsidiary to parent
• B) Investment in subsidiary
• C) Amount owed by parent to subsidiary
• D) Sale to customer

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Definitions:

Dividend Yield

The annual dividend a company provides vis-a-vis its stock price, presented as a financial ratio.

Dividend Income

Income received from owning shares in a company that pays dividends to its shareholders.

Shares

A unit of ownership in a company or financial asset that represents a proportion of the corporation's capital.

T-Bills

Short-term government securities with maturities of less than a year, sold at a discount from their face value.