During the Current Year a Partly Owned Subsidiary Has Made

question 18

Multiple Choice

During the current year a partly owned subsidiary has made a transfer from retained earnings to a general reserve.Which of the following lines would appear in the NCI journal relating to the current year transfer?

• A)DR NCI
• B)DR Retained earnings
• C)CR General reserve
• D)CR Transfer to general reserve

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Definitions:

Option Contract

A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a set price within a specific period.

European Option

A type of option contract that can only be exercised at the expiration date, not before.

American Option

A type of options contract that allows holders to exercise their right to buy or sell the underlying asset at any time before the expiration date.

European Option

A type of financial derivative that gives an investor the right, but not the obligation, to buy or sell an asset at a specified price on the option's expiration date.