Dividends Declared by a Subsidiary Are Eliminated Against Dividend Income

question 11

Multiple Choice

Dividends declared by a subsidiary are eliminated against dividend income recorded by the parent under the:

• A) partial equity method.
• B) equity method.
• C) cost method.
• D) equity and partial equity methods.

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Definitions:

Superior Vena Cava

A large vein that carries deoxygenated blood from the upper body to the heart.

Jugular Vein

A vein that carries deoxygenated blood from the head back to the heart.

Pulmonary Vein

A vein that carries oxygenated blood from the lungs to the left atrium of the heart.

Inferior Vena Cava

A large vein that carries deoxygenated blood from the lower and middle body into the right atrium of the heart.