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  3. Study Set
    Understanding Australian Accounting Standards
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    Exam 25: Consolidation: Principles and Accounting Requirements
  5. Question
    When a Dividend Is Paid by a Wholly-Owned Subsidiary Out
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When a Dividend Is Paid by a Wholly-Owned Subsidiary Out

Question 1

Question 1

Multiple Choice

When a dividend is paid by a wholly-owned subsidiary out of pre-acquisition equity, the parent entity recognises:
This is explained more in Chapter 26.


A) a reduction in the investment in the subsidiary
B) a decrease in share capital
C) an increase in dividend income
D) a decrease in dividend revenue.

Correct Answer:

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