1. For external reporting, the individual financial statements of the home office and the branch are combined a. by using complex consolidation procedures. b. by recognizing the home office's own assets, liabilities, income and expenses plus its share in the branch's assets, liabilities, income and expenses. c. by adding together similar items of assets, liabilities, income and expenses. d. by adding together similar items of assets, liabilities, income and expenses 'and eliminating reciprocal accounts.
1. For external reporting, the individual financial statements of the home office and the branch are combined
a. by using complex consolidation procedures.
b. by recognizing the home office's own assets, liabilities, income and expenses plus its share in the branch's assets, liabilities, income and expenses.
c. by adding together similar items of assets, liabilities, income and expenses.
d. by adding together similar items of assets, liabilities, income and expenses 'and eliminating reciprocal accounts.
2. A credit memo received from the branch is recorded by the home office as
a. Credit to home office account
b. Credit to allocated expense
c.Credit to investment account
d. Debit to investment account
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