If a Parent Company and Its Subsidiary Have Accounts Receivable

question 79

Multiple Choice

If a parent company and its subsidiary have accounts receivable from mutually exclusive external sources in the amounts of $35,000 and $20,000, respectively, the consolidated balance sheet for the parent and its subsidiary will show:

• A) one accounts receivable balance of $55,000
• B) net accounts receivable of $15,000
• C) only the parent's accounts receivable balance
• D) both amounts, but it will list them in two separate accounts

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Definitions:

Suspension Systems

The collection of components that connect a vehicle to its wheels, providing stability, handling, and comfort by absorbing and dampening shock.

ASE T5

A certification exam conducted by the National Institute for Automotive Service Excellence, specifically focusing on the diagnosis, service, and repair of medium/heavy duty suspension and steering systems.

Vehicle Retarder

Auxiliary braking device used to supplement the service brakes; in most cases these convert chassis kinetic energy into hydraulic or electrical energy and are located in the driveline. Distinct from engine or transmission retarders.

Kingpin Lock

A security device that locks the kingpin of a semi-trailer to prevent unauthorized coupling or theft of the trailer.