Unite Ltd Provided a Loan of $1 000 000 to Its

question 40

Multiple Choice

Unite Ltd provided a loan of $1 000 000 to its subsidiary Inspire Ltd. Interest of $100 000 was charged during the year ended 30 June 2018. On consolidation, which of the following adjustments is needed at 30 June 2018 in relation to the interest charged?

• A) No adjustment needed
• B) Dr Interest revenue $100 000 Cr Interest expense $100 000
• C) Dr Interest expense $100 000 Cr Interest revenue $100 000
• D) Dr Retained earnings $100 000 Cr Cash $100 000

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Definitions:

Clinical Psychologists

Professionals specializing in diagnosing and treating mental illness, emotional disturbances, and dysfunctional behavior.

Generative

Pertains to the ability to produce or create something new or innovative.

Symbolic

Representing something else, especially something abstract, through symbols or symbolism.

Semantic

Pertaining to meanings or the way meaning is constructed in language, especially the meaning of words and sentences.