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:

Cash Budget

A detailed plan that estimates the cash inflows and outflows over a specific period, used for managing liquidity and ensuring solvency.

Direct Materials Budget

A financial plan that estimates the raw materials needed to meet production goals and the costs associated with purchasing them.

Ending Direct Materials

The value of materials that are available for use at the end of a specific accounting period, after accounting for beginning inventory and any purchases or usage during the period.

Beginning Direct Materials

The cost of raw materials available for use in production at the start of an accounting period.