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

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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.

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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

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

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Accounting

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