The Purchase of Outstanding Subsidiary Bonds by the Parent Company

question 46

Multiple Choice

The purchase of outstanding subsidiary bonds by the parent company has the same impact on consolidated statements as:​

• A)​the subsidiary retiring its own debt with the proceeds of new debt issued to outside parties.
• B)​the subsidiary retiring the debt with the proceeds of a loan from the parent.
• C)​the subsidiary retiring the debt with the proceeds of a new stock issue.
• D)​allowing the bonds to continue to be held by outside interests.

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Definitions:

Serotonin

A neurotransmitter that plays a key role in mood regulation, appetite, and sleep.

GABA

Gamma-aminobutyric acid, a neurotransmitter in the brain that is involved in inhibiting excitatory processes and is associated with reducing anxiety.

Atypical Antipsychotic

A class of medication used to treat psychiatric conditions, known for fewer traditional side effects associated with older antipsychotic drugs.

Dopamine

A neurotransmitter involved in many functions, including mood, sleep, learning, and reward mechanisms.