At the Date of Acquisition a Subsidiary Had Recorded a Dividend

question 19

Multiple Choice

At the date of acquisition a subsidiary had recorded a dividend payable of $10 000.The consolidation adjustment needed at the date of acquisition in relation to this event is:

• A)DR Dividend payable $10 000 CR Dividend receivable $10 000
• B)DR Dividend revenue $10 000 CR Dividend declared $10 000
• C)DR Shares in subsidiary $10 000 CR Dividend receivable $10 000
• D)DR Cash $10 000 CR Shares in subsidiary $10 000.

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Definitions:

Expected Utility

A concept in economics and decision theory that represents the average of all possible outcomes under uncertainty, weighted by their respective probabilities and the utility or satisfaction each outcome provides.

Marginal Utility

The additional satisfaction or benefit a consumer gains from consuming one more unit of a good or service.

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Insurance coverage that provides income support to individuals who are unable to work due to disability.

Expected Utility

A theory in economics that quantifies how choices are made under uncertainty based on the perceived utility or satisfaction from different outcomes.