Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a wholly-owned subsidiary declares and pays a cash

A wholly-owned subsidiary declares and pays a cash dividend. What effect does the dividend have on...

90.2K

Verified Solution

Question

Accounting

A wholly-owned subsidiary declares and pays a cash dividend.What effect does the dividend have on the consolidated balancesheet?

A. Increases cash and decreases retained earnings.

B. No effect on cash and decreases retained earnings.

C. Decreases cash and decreases retained earnings.

D. No effect on the consolidated balance sheet.

Answer & Explanation Solved by verified expert
4.4 Ratings (942 Votes)
Answer Option D No effect on the consolidated balance sheet is the correct answer Explanation The acquirees retained earnings yearend balance would be reported on the consolidated balance sheet Though the declaration and    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

Valles Global Industries (VGI) is getting ready to market their Internet-based party planning service. One of...

Advance Math
1.2K views

Research one of the fields below. a description of what the field is, i.e. what topics...

Biology
1.2K views

When someone has an auto immune disease their bodies immune system mistakes our own cells...

Statistics
1.2K views

ces Required 1 Required 2 Prepare a petty cash payments report for February with these...

Calculus
1.2K views

rmine a value of the g x x 3x 3x if x 1 ax 4...

Algebra
1.2K views

Let S be the the ellipsoid given by the equation x + y + 6z...

Algebra
1.2K views

Factor Trinomials a 1 Level 2 Jun 05 11 21 17 PM Watch help video...

Algebra
1.2K views

If you have a 1 in a thousand chance of winning 400 but 999 out...

Algebra
1.2K views

6 5 4 3 2 6 B A 7 2 B 2 5 C 0...

Accounting
1.2K views

A stock that does not pay a dividend is trading at $73.5. A riskless bond...

Accounting
1.2K views

Current Attempt in Progress Vaughn Corporation acquired a 35% interest in Tamarisk Company on...

Accounting
1.2K views

What are threats to inventory within the production cycle (both threats to physical inventory and...