When a Company Applies the Partial Equity Method in Accounting

question 116

Multiple Choice

When a company applies the partial equity method in accounting for its investment in a subsidiary and the subsidiary's equipment has a fair value greater than its book value, what consolidation worksheet entry is made in a year subsequent to the initial acquisition of the subsidiary?

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

---

Definitions:

Stereotyping

The act of generalizing characteristics, traits, or behaviors to all members of a particular group, often leading to oversimplification or bias.

Foot-In-The-Door Technique

A persuasion strategy that involves getting a person to agree to a small request to increase the likelihood of agreeing to a larger request later.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Social Identity

The portion of an individual's self-concept derived from perceived membership in a relevant social group, such as a national, religious, or occupational group.