P Ltd Provides Management Services to Its Subsidiary Company S $\quad\quad\$ 100,000$

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 \(\quad\quad\$ 100,000\)
• Cr. Management Fee Expense \(\quad\quad\$ 100,000\)
• B) Dr. Management Fee Revenue \( \quad\quad\$ 100,000 \)
• Cr. Management Fee Expense \(\quad\quad \$ 100,000 \)
• Dr. Accrued Fees Payable \( \quad\quad\quad\quad\$ 20,000 \)
• Cr. Accrued Fees Receivable \( \quad\quad\quad \$ 20,000 \)
• C) Dr. Management Fees Revenue \(\quad\quad\$ 80,000\)
• Cr. Management Fees Expense \(\quad\quad\$ 80,000\)
• D) none of the above

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Definitions:

Illegal

Activities or actions that are prohibited by law or statute, subject to penalties or sanctions.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes, known for effects such as relaxation and altered perception.

Medical Reasons

Conditions or circumstances pertaining to health that necessitate a specific course of treatment or consideration.

Cannabis

A genus of flowering plants in the family Cannabaceae, known for containing psychoactive compounds like THC, used both recreationally and medicinally.