E 4-1 General questions 1. Under the equity method, the change in the investment account over a period is equal to: a The difference between income from a subsidiary recognized on the parents book and dividends received from the subsidiary b The difference between dividends received from a subsidiary and income from the subsidiary recognized on the parents book c The sum of income from a subsidiary recognized on the parents book and dividends received from the subsidiary d The sum of dividends received from a subsidiary and its net income

2. The portion of a subsidiarys net income that is not given to the parent is called: a Noncontrolling interest b Noncontrolling interest share c Income from subsidiary d Controlling interest share

3. The portion of a subsidiarys share that is not owned by the parent is called: a Noncontrolling interest b Noncontrolling interest share c Income from subsidiary d Controlling interest share