S1: The non-controlling interest of a less-than-wholly owned subsidiary have a claim on the income and net asset of the subsidiary even though the subsidiary is consolidated with its parent and, perhaps, other subsidiaries. S2: The dividends paid by the subsidiary to the parent is a permanent account that is closed to accumulated profits at the end of the year. Only S1 is correct Only S2 is correct Both statements are incorrect Both statements are correct
S1: The non-controlling interest of a less-than-wholly owned subsidiary have a claim on the income and net asset of the subsidiary even though the subsidiary is consolidated with its parent and, perhaps, other subsidiaries. S2: The dividends paid by the subsidiary to the parent is a permanent account that is closed to accumulated profits at the end of the year. Only S1 is correct Only S2 is correct Both statements are incorrect Both statements are correct
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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S1: The non-controlling interest of a less-than-wholly owned subsidiary have a claim on the income and net asset of the subsidiary even though the subsidiary is consolidated with its parent and, perhaps, other subsidiaries. S2: The dividends paid by the subsidiary to the parent is a permanent account that is closed to
Only S1 is correct
Only S2 is correct
Both statements are incorrect
Both statements are correct
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