P Ltd Provides Management Services to Its Subsidiary Company S

question 12

Multiple Choice

P Ltd provides management services to its subsidiary company S Ltd for $100,000 per year.At the end of the current year S Ltd owes $20,000 of this fee.The entry required on consolidation is:

• A) DR Management Fee Revenue $100,000 CR Management Fee Expense $100,000
• B) DR Management Fee Revenue $100,000 CR Management Fee Expense $100,000
• DR Accrued Fees Payable $20,000
• CR Accrued Fees Receivable $20,000
• C) DR Management Fees Revenue $80,000 CR Management Fees Expense $80,000
• D) None of the above

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Definitions:

Recall

The act of retrieving information or facts from one's memory without having the information present for reference, differing in context as a duplicated term but synonymous with retrieving learned information.

Priming

The process by which exposure to a stimulus influences a response to a subsequent stimulus, without conscious guidance or intention.

Savings Method

A technique in psychology to measure the retention of learned material over time by assessing the amount of review required to relearn it.

False Positive

An error in data reporting in which a test result improperly indicates the presence of a condition (like a disease) when it is not actually present.