8. If a firm consolidates subsidiaries that are not wholly owned, an income statement item is created that is termed: a. dividend income b. minority share of earnings c. equity income d. extraordinary e. gain from sale of subsidiary ANS: B

8. If a firm consolidates subsidiaries that are not wholly owned, an income statement item is created that is termed: a. dividend income b. minority share of earnings c. equity income d. extraordinary e. gain from sale of subsidiary ANS: B

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

8. If a firm consolidates subsidiaries that are not wholly owned, an income statement item is created that
is termed:
a. dividend income
b. minority share of earnings
c. equity income
d. extraordinary
e. gain from sale of subsidiary
ANS: B

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