When a Parent Uses the Equity Method Throughout the Year

question 19

Multiple Choice

When a parent uses the equity method throughout the year to account for its investment in an acquired subsidiary, which of the following statements is false before making adjustments on the consolidated worksheet?

• A) Parent company net income equals controlling interest in consolidated net income.
• B) Parent company retained earnings equals consolidated retained earnings.
• C) Parent company total assets equals consolidated total assets.
• D) Parent company dividends equals consolidated dividends.
• E) Goodwill will not be recorded on the parent's books.

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Definitions:

Quantity of X

The amount or number of a product or service X available or demanded in a market.

Property Crime

Refers to crimes that involve the theft of personal property without the use of force against the victim.

Internet Auction Sites

Online platforms where goods and services are sold through a bidding process, with the highest bid typically winning the item.

Greater Penalties

Refers to the imposition of harsher punishments or fines to deter undesirable actions or behavior within a specific context.