When a Parent Recognises a Pre-Acquisition Dividend That Is Declared $\begin{array} { l l l } \text { DR } & & \text { Dividend receivable } \\& \mathrm { CR } & \text { Dividend income }\end{array}$

Multiple Choice

When a parent recognises a pre-acquisition dividend that is declared by a wholly-owned subsidiary it makes the following entry in its accounting records:
This is explained more in Chapter 26.

A)
$\begin{array} { l l l } \text { DR } & & \text { Dividend receivable } \\& \mathrm { CR } & \text { Dividend income }\end{array}$
B)
DR $\quad$ Dividend income
CR $\quad$ Dividend receivable
C)
DR $\quad$ Dividend receivable
$\quad$ CR $\quad$ Shares in subsidiary
D)
$\begin{array} { l l l } \text { DR } & \text { Shares in subsidiary } \\ \mathrm { CR } & \text { Dividend income. }\end{array}$