When a U.S.subsidiary in another country remits profits back to its parent company in the U.S.,the receipt of profits is recorded in the ________.
A) income receipts account and given a plus sign
B) income receipts account and given a minus sign
C) income payments account and given a plus sign
D) income payments account and given a minus sign

Question

Quizplus · Accepted Answer

When a U.S. subsidiary in another country remits profits back to its parent company in the U.S., the receipt of these profits is recorded in the income receipts account and is given a plus sign, indicating an inflow of income to the U.S.

When a USSubsidiary in Another Country Remits Profits Back to Its Parent