ACC 401

ACC 401 WEEK 4 QUIZ

ACC 401 Week 4 Quiz,
Chapter 4

Consolidated Financial Statements after Acquisition

1. An investor adjusts the investment account for the amortization of any difference between cost and book value under the

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a. cost method.

b. complete equity method.

c. partial equity method.

d. complete and partial equity methods.

2. Under the partial equity method, the entry to eliminate subsidiary income and dividends includes a debit to

a. Dividend Income.

b. Dividends Declared - S Company.

c. Equity in Subsidiary Income.

d. Retained Earnings - S Company.

3. On the consolidated statement of cash flows, the parent’s acquisition of additional shares of the subsidiary’s stock directly from the subsidiary is reported as

ACC 401 WEEK 4 QUIZ