During the Current Year, a Partly-Owned Subsidiary Has Made a Transfer

question 17

Multiple Choice

During the current year, a partly-owned subsidiary has made a transfer from retained earnings to a general reserve. Which of the following lines would appear in the NCI journal relating to the current year transfer?

• A) Dr NCI.
• B) Dr Retained earnings.
• C) Cr General reserve.
• D) Cr Transfer to general reserve.

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Definitions:

Voluntary Assumption

The act of willingly taking on duties, responsibilities, or liabilities, often without coercion or obligation.

Risk

The possibility of loss or damage arising from a specific action or event.

Defence

Legal arguments and evidence presented to counter a claim or accusation in a court of law.

Errors and Omissions

A type of professional liability insurance that protects companies and individuals against claims made by clients for inadequate work or negligent actions.