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:

Round Ligament

A cord-like structure that helps maintain the uterus in its proper position within the pelvic cavity.

Secondary Spermatocyte

A cell that arises from the division of a primary spermatocyte during spermatogenesis and goes on to divide into spermatids.

Meiosis II

The second division in meiosis, a process of cell division that reduces the chromosome number by half, resulting in the production of four genetically distinct gametes.

Meiosis I

The first division in the two-stage process of meiosis that reduces the chromosome number by half, resulting in four haploid cells.