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