In Reporting Consolidated Earnings Per Share When There Is a Wholly

question 108

Multiple Choice

In reporting consolidated earnings per share when there is a wholly owned subsidiary, which of the following statements is true?

• A) Parent company earnings per share equals consolidated earnings per share when the equity method is used.
• B) Parent company earnings per share is equal to consolidated earnings per share when the initial value method is used.
• C) Parent company earnings per share is equal to consolidated earnings per share when the partial equity method is used and acquisition-date fair value exceeds book value.
• D) Parent company earnings per share is equal to consolidated earnings per share when the partial equity method is used and acquisition-date fair value is less than book value.
• E) Preferred dividends are not deducted from net income for consolidated earnings per share.

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Definitions:

HR

Short for Human Resources, pertains to the department within an organization that deals with employee-related functions such as hiring, training, payroll, and benefits administration.

Employee Career Planning

The process in which an individual, often with the assistance of the employer, plans and organizes their professional path, goals, and development.

Behavioural Modelling

A method of teaching or learning new skills and behaviours by mimicking or practicing observed actions.

Sensitivity Training

Programs designed to enhance individuals’ understanding and empathy towards the differences and diversity of others in the workplace.