The Following Accounts Were Noted in Reviewing the Trial Balance

question 4

Multiple Choice

The following accounts were noted in reviewing the trial balance for Parent Co. and Subsidiary Corp.: Assets under Construction
Contracts Receivable
Billings on Construction in Progress
Earned Income on Long-Term Contracts
Contracts Payable
Which of these accounts do you expect to eliminate when producing Parent Co. consolidated financial statements?

• A) Assets under Construction; Billings on Construction in Progress; Earned Income on Long-Term Contracts
• B) Contracts Receivable; Billings on Construction in Progress; Earned Income on Long-Term Contracts
• C) Assets under Construction; Contracts Receivable; Billings on Construction in Progress; Earned Income on Long-Term Contracts; Contracts Payable
• D) Contracts Receivable; Billings on Construction in Progress; Earned Income on Long-Term Contracts; Contracts Payable