When a Parent-Subsidiary Relationship Exists Between Two Companies

question 78

Multiple Choice

When a parent-subsidiary relationship exists between two companies:

• A) the parent company will keep one set of accounting records covering both companies
• B) the subsidiary company will keep one set of accounting records covering both companies
• C) the parent company must use the cost method to account for the subsidiary
• D) both the parent and the subsidiary will continue to keep their own separate accounting records as if the parent-subsidiary relationship does not exist

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Definitions:

Process Conflict

A type of conflict that arises from differences in understanding about how tasks should be accomplished in a work environment.

Disagreements

Instances of conflict or difference of opinion between individuals or groups.

Work Organized

A reference to how work is systematically arranged or structured within an organization to achieve efficiency and productivity.

Antagonistic Attitudes

Hostile or oppositional perspective towards others or certain ideas, often resulting in conflict or resistance.