MCQ Which method governs elimination of unrealized profit inupstream transactions?a) Parent company ownership percentb) Subsidiary ownership percentc) Full elimination regardless of percentd) Proportional to dividends paid

Concept of Parent Company Ownership PercentThe parent company ownership percent refers to the…

Answered: Which method governs elimination of…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4: Preparing And Using Financial Statements

Section: Chapter Questions

Problem 8DQ

See similar textbooks

Similar questions

When an investor uses the cost method to account for investments in subsidiary, cash dividends received by the investor from the investee should normally be recorded as: A. Ignored. B. Dividend income. C. An addition to the investor’s share of the investee’s profit. D. A deduction from the investment account E. A deduction from the investor’s share of the investee’s profit.
Question 5.8.35 accounting
How is the investor’s share of gross profit on intra-entity sales calculated? Under the equity method, how does the deferral of gross profit affect the recognition of equity income?
For fi nancial assets classifi ed as available for sale, how are unrealized gains and losses refl ected in shareholders’ equity? C . Th ey are a component of accumulated other comprehensive income.
When the income statement includes discontinued operations, which amounts require per share presentation?
The cost method of accounting for stock Group of answer choices recognizes dividends as income requires the investment to be decreased by the reported net income of the investee is only appropriate as part of a consolidation requires the investment to be increased by the reported net income of the investee
Which of the following statements regarding net income transferred to retained earnings is correct? A) Net income = net income transferred to retained earnings - dividends B) Net income transferred to retain earnings = net income + dividends C) Net income = net income transferred to retain earnings + dividends D) Net income transferred to retain earnings - net income = dividends
why the company logo is an asset? what does mean by retained earning (when it is not distributed as dividends)
why dividend receipt revenue is consideres as operating activity?
The method of accounting for subsidiaries where investment income is limited to dividends received is the a. cost method. b. simple equity method. c. investment method. d. sophisticated equity method.
The fair value method of accounting for stock a.recognizes dividends as income b.requires the investment to be decreased by the reported net income of the investee c.requires the investment to be increased by the reported net income of the investee d.is only appropriate as part of a consolidation
1. Which of the following would appear first in a statement of retained earnings? Choices; Cash dividend Prior period error Net income Share dividend 2. Which of the following does not appear in a statement of retained earnings? Choices; Net loss Preference share dividend Other comprehensive income Prior period error

SEE MORE QUESTIONS

Recommended textbooks for you

Entrepreneurial Finance

Finance

ISBN:

9781337635653

Author:

Leach

Publisher:

Cengage

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Entrepreneurial Finance

Finance

ISBN:

9781337635653

Author:

Leach

Publisher:

Cengage

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

SEE MORE TEXTBOOKS

Which method governs elimination of unrealized profit in upstream transactions? a) Parent company ownership percent b) Subsidiary ownership percent c) Full elimination regardless of percent d) Proportional to dividends paid