A) Retained Earnings $\quad$ $\quad$ Investment in Subsidiary
B) Investment in Subsidiary

question 111

Multiple Choice

A) Retained earnings
$\quad$$\quad$ Investment in subsidiary
B) Investment in subsidiary
$\quad$$\quad$ Retained earnings
C) Investment in subsidiary
$\quad$$\quad$ Equity in subsidiary's income
D) Investment in subsidiary
$\quad$$\quad$ Additional paid-in capital
E) No entry is necessary.
-When a company applies the partial equity method in accounting for its investment in a subsidiary and initial value,book values,and fair values of net assets acquired are all equal,what consolidation worksheet entry would be made?

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

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Definitions:

Doubtful Debts Expense

An accounting concept referring to the provision a company makes to account for amounts it expects will not be collected from debtors.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Long-Service Leave

An employee benefit offering paid leave to those who have been employed by the same company for a long period of time, typically recognized in countries like Australia.

Accounting Policies

The exclusive doctrines, fundamentals, customs, laws, and strategies adopted by a firm in assembling and revealing its financial documentation.