Where an Acquisition in an Associate Results in an Excess

question 1

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:

Psychiatric Inpatients

Individuals who are admitted to a hospital or psychiatric facility for mental health treatment and are residing there temporarily.

Newly Acquired Skills

Abilities or expertise developed recently through training, practice, or experience.

Program Activities

Specific actions or operations designed to achieve the objectives of a program.

Ending Stage

The final phase in a process, relationship, or project where closure and reflection occur, leading to completion or termination.