If an Interim Dividend Is Paid by a Subsidiary to Its

question 42

Multiple Choice

If an interim dividend is paid by a subsidiary to its parent, the consolidation entry to eliminate the transaction is which of the following?

• A) Dr Interim dividend paid; Cr Dividend revenue
• B) Dr Dividend revenue; Cr Interim dividend paid
• C) Dr Dividend revenue; Cr Dividend payable
• D) Dr Interim dividend paid; Cr Cash

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Definitions:

Sidewalk

A paved path for pedestrians at the side of a road.

Schema

Cognitive structures that help individuals organize and interpret information, based on their accumulated knowledge and experiences.

Mathematics

The abstract science of number, quantity, and space, either as abstract concepts (pure mathematics) or as applied to other disciplines such as physics and engineering (applied mathematics).

Script

A predetermined, stereotyped sequence of actions that defines a well-known situation, guiding behavior in social contexts.