Where an Acquisition in an Associate Results in an Excess

question 15

Multiple Choice

Where an acquisition in an associate results in an excess the excess is accounted for in the year of acquisition as follows:

• A) as a credit against the investment in associate account.
• B) as a credit against the share of associate profit account.
• C) as a debit against the share of associates retained earnings
• D) no adjustment is required due to the single line method of accounting followed under the equity method.

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Definitions:

Vulnerable Narcissism

A form of narcissism characterized by sensitivity to criticism, insecurity, and an internal sense of grandiosity and entitlement.

Neurotic

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and jealousy.

Anxious

Feeling of worry, nervousness, or unease about something with an uncertain outcome.

Narcissist

An individual exhibiting excessive self-love or self-centeredness, often associated with a lack of empathy and a need for admiration.