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hichkok12 [17]
4 years ago
9

Under the cost method, dividends declared by a subsidiary are accounted for by the parent as: Select one: A. Dividend income. B.

Decrease in Equity Investment. C. Increase in Equity Income. D. Decrease in Equity Investment, but only if it is a liquidating dividend.
Business
1 answer:
soldi70 [24.7K]4 years ago
6 0

Answer:

B. Decrease in Equity Investment

Explanation:

As we know that

At the time of payment of dividend it reduces the cash balance plus we debited the dividend payable.

The journal entry is also shown for better understanding

Dividend payable A/c $122,838

          To Cash A/c $122,838

(Being the dividend is paid)

So as per the cost method, the dividend declared by a subsidiary reduced the equity investment

Therefore, the second option is correct

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<h3>What is partnership?</h3>

A partnership is an agreement in which two or more parties, known as business partners, agree to work together to advance their mutual interests. Individuals, businesses, interest-based organizations, schools, governments, or combinations can form partnerships.

A partnership is a single business owned by two or more people. Each partner contributes to every aspect of the business, whether it's money, property, labor, or skill. In exchange, each partner shares in the company's profits and losses.

The goal of a partnership agreement (or partnership contract) is to create a legally binding contract between two or more individuals or other legal entities in order to establish a business enterprise. This partnership agreement specifies each partner's or entity's rights and responsibilities.

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2 years ago
In one city, Biggies', a competing retail outlet, opens a store across the street from a Sam-Mart. A battle for business ensues.
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Answer:

A.

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In the given case, the two companies are engaging in external positioning. Therefore, option A is correct.

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3 years ago
Andy decides to go skydiving for his 40th birthday. He signs a waiver, boards the plane and prepares for the jump. Everything is
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Answer:assumption of the risk.

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The most important elements of assumption of risk are that the person voluntarily and knowingly assumed the risks inherent to the dangerous activity. Furthermore, it is necessary for the defendant (the person the lawsuit was brought against) to demonstrate that the plaintiff knew of all risks at the time of the injury.

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A registered investment adviser often recommends real estate limited partnership investments to her wealthy clients. The RIA's p
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