M4 Flashcards
1
Q
Direct out of pocket costs and indirect costs are
A
expensed
2
Q
Registration costs such as SEC filing fees are
A
a reduction in parent’s APIC
3
Q
Why is equity method/cost method used for parent company
A
For internal accounting purposes. When consolidated, it is eliminated.
4
Q
Your APIC eliminating entry is never greater than the sub’s
A
net assets
