When a Canadian subsidiary in another country remits profits back to its parent in Canada,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

The receipt of profits from a foreign subsidiary is considered an income receipt for Canada, thus it is recorded in the income receipts account with a plus sign, indicating an inflow of funds.

When a Canadian Subsidiary in Another Country Remits Profits Back