Both consolidation and equity method accounting assume a dollar earned by a subsidiary is equivalent to...
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Both consolidation and equity method accounting assume a dollar earned by a subsidiary is equivalent to a dollar earned for a parent, even if not received in cash. The limitations of this assumption of dollar-for-dollar equivalence include which of the following? 1. Dividends restricted by law and loan covenants II. Risks due to political and economic factors II. Tax liabilities from remittance of earnings IV. Minority interests that limit parent's discretion A. Il and II B. I C. I and II D. I, II, II, and IV Both consolidation and equity method accounting assume a dollar earned by a subsidiary is equivalent to a dollar earned for a parent, even if not received in cash. The limitations of this assumption of dollar-for-dollar equivalence include which of the following? 1. Dividends restricted by law and loan covenants II. Risks due to political and economic factors II. Tax liabilities from remittance of earnings IV. Minority interests that limit parent's discretion A. Il and II B. I C. I and II D. I, II, II, and IV
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