Question
1. Which one of the following varies between the equity, initial value, and partial equity methods of accounting for an investment? a. Total assets on
1. Which one of the following varies between the equity, initial value, and partial equity methods of accounting for an investment?
a. Total assets on the consolidated balance sheet.
b. The amount of consolidated net income.
c.The amount of consolidated cost of goods sold.
d. The balance in the investment account on the parent's books.
e. Total liabilities on the consolidated balance sheet.
2. Under the partial equity method, the parent recognizes income when:
a. The related expense has been incurred.
b. It is earned by the subsidiary.
c. Dividends are declared by the investee.
d. The related contract is signed by the subsidiary.
e. Dividends are received from the investee.
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