Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

when a parent uses the equity method throughout the year to account for its investment in an acquired subsidiary , which of the following statment

when a parent uses the equity method throughout the year to account for its investment in an acquired subsidiary , which of the following statment is always true before making adjustments on the consolidated worksheet?

a)parent company total stockholders equity is always equal consolidated stockholders equity.

b)parent company total liability is equal consolidated total liabilities.

c)parent company total assets equals consolidated total assets.

d)parent company net income equal consolidated net income even if the parent owns less than 100% of the subsidiary.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing

Authors: Michael C. Knapp

10th edition

978-1285066608, 128506660X, 978-1305445161, 1305445163, 978-1305970816

More Books

Students also viewed these Accounting questions