Consolidated Retained Earnings Include

question 25

Multiple Choice

Consolidated Retained Earnings include:

• A) consolidated net income less any dividends declared by either the parent or the subsidiary.
• B) consolidated net income less any dividends declared by the parent only.
• C) the parent's net income plus its share of the subsidiary's income less any dividends declared by either the parent or the subsidiary.
• D)the parent's share of consolidated net income less any dividends declared by the parent.

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Definitions:

Physical Inventory

Physical Inventory involves a manual count of all physical goods a company has in stock at a specific point in time to ensure accuracy of inventory records.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, resulting in a net profit or loss.

Ending Inventory

The value of goods that a company has in stock at the end of its fiscal year, calculated as the beginning inventory plus purchases minus the cost of goods sold.

Accounts Payable

A liability to a creditor, carried on an open account, usually for purchases of goods and services.