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Chapter 05 Quiz.docx
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Page 5
Chapter 3
3-5
10.
In consolidated financial statements it is expected that:
a.
Dividends declared equals the sum of the total parent
company's declared dividends and the total subsidiary's
declared dividends.
b.
Retained Earnings equals the sum of the controlling
interest's separate retained earnings and the
noncontrolling interest's separate retained earnings.
c.
Common Stock equals the sum of the parent company's
outstanding shares and the subsidiary's outstanding shares.
d.
Net Income equals the sum of the income distributed to
the controlling interest and the income distributed to
the noncontrolling interest.
ANS: D
DIF: E
OBJ: 2, 3, 4
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