Which of the Following Entries Would Not Require an Eliminating

question 37

Multiple Choice

Which of the following entries would not require an eliminating entry when one is preparing consolidated financial statements?

• A) Amount owed by subsidiary to parent
• B) Investment in subsidiary
• C) Amount owed by parent to subsidiary
• D) Sale to customer

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Definitions:

Health Care Costs

The total expenses for services rendered by healthcare providers, including hospitals, doctors, and medication.

Premium Payment

The amount paid for an insurance policy, either regularly or as a lump sum.

Flood Insurance

A specific insurance coverage against property loss from flooding, typically required for buildings in designated flood-prone zones.

Pooling Of Risk

The practice of spreading financial risks among a large number of participants, thereby minimizing the overall impact to any single participant.