When a Company Applies the Initial Method in Accounting for Its

question 90

Multiple Choice

When a company applies the initial method in accounting for its investment in a subsidiary and the subsidiary reports income in excess of dividends paid, what entry would be made for a consolidation worksheet?

• A) A above
• B) B above
• C) C above
• D) D above
• E) E above

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Definitions:

Pretend Play

A form of play among children where they use their imagination to create scenarios, roles, and activities.

Object Permanence

Piaget’s term for the understanding that a person or object still exists when out of sight.

Centration

In Piaget’s theory, the tendency of preoperational children to focus on one aspect of a situation and neglect others.

Socioeconomic Status

A measure of an individual's or family's economic and social position in relation to others, based on income, education, and occupation.