Nelson Limited Has Two Subsidiary Entities,Poggi Limited and Holly Limited

question 3

Multiple Choice

Nelson Limited has two subsidiary entities,Poggi Limited and Holly Limited.Nelson Limited owns 100% of the shares in both entities.Details of issued share capital are:
-Nelson Limited $100 000
-Poggi Limited $30 000
-Holly Limited $15 000
The worksheet adjustment entry made in order to determine the amount of consolidated share capital is:

• A)DR Share capital $145 000 CR Shares in subsidiaries $145 000
• B)DR Share capital $100 000 CR Shares in subsidiaries $100 000
• C)DR Share capital $45 000 CR Shares in Poggi Limited $30 000
• CR Shares in Holly Limited $15 000
• D)DR Share capital $145 000 CR Shares in Nelson Limited $100 000
• CR Shares in Poggi Limited $30 000
• CR Shares in Holly Limited $15 000

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Definitions:

Total Asset Turnover

An economic indicator that assesses how well a business uses its assets to generate sales.

Profit Margin

A financial metric indicating the percentage of revenue that remains as profit after all expenses are deducted.

Statement of Cash Flows

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.

Net Cash Flow

The variance between the amount of cash coming into a business and going out of it during a given time frame.