When a Subsidiary Declares a Final Dividend Payable to a Parent

question 1

Multiple Choice

When a subsidiary declares a final dividend payable to a parent who has a 100% interest in the subsidiary the parent recognises a dividend receivable and the subsidiary recognises a dividend payable. In addition to the elimination of these two items on consolidation, the following items must also be eliminated:

• A) Dividend declared and Retained earnings
• B) Dividend declared and Dividend revenue
• C) Dividend revenue and Cash
• D) Dividend declared and Cash.

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Definitions:

Dialectical Behavior Therapy

A type of cognitive-behavioral therapy that aims to teach people new skills to manage painful emotions and decrease conflict in relationships, particularly for those with borderline personality disorder.

Emotional Reactions

Responses that are primarily emotional in nature to an event or stimulus, characterized by feelings such as happiness, sadness, anger, or fear.

Feelings Of Distress

Emotional suffering characterized by symptoms such as anxiety, depression, and angst.

Decatastrophize Thinking

A cognitive-behavioral therapy technique that involves challenging and reducing irrational fears and catastrophic thinking.