P Ltd Lends $200 000 to Its Subsidiary S Ltd $\begin{array} { l l } \text { Dr. Loan Payable } & \$ 200,000 \\\text { Cr. Loan Receivable } & \$ 200,000\end{array}$

question 33

Multiple Choice

P Ltd lends $200 000 to its subsidiary S Ltd.At the end of the year,S Ltd has paid interest of $18 000 and owes a further $2000 (assume a tax rate of 30%) .The required consolidation entry is:

• A)\(\begin{array} { l l }
• \text { Dr. Loan Payable } & \$ 200,000 \\
• \text { Cr. Loan Receivable } & \$ 200,000
• \end{array}\)
• B)\(\begin{array} { l l }
• \text { Dr. Loan Payable } & \$ 200,000 \\
• \text { Cr. Loan Receivable } & \$ 200,000 \\
• \text { Dr. Interest Revenue } & \$ 20,000 \\
• \text { Cr. Interest Payable } & \$ 20,000
• \end{array}\)
• C)\(\begin{array} { l c }
• \text { Dr. Loan Payable } & \$ 200,000 \\
• \text { Cr. Loan Receivable } & \$ 200,000 \\
• \text { Dr. Interest Revenue } & \$ 20,000 \\
• \text { Cr. Interest Expense } & \$ 20,000 \\
• \text { Dr. Accrued Interest Payable } \$ 2000 & \\
• \text { Cr. Accrued Interest Receivable } \$ 2000
• \end{array}\)
• D)\(\begin{array}{l}
• \text { Entry } \mathrm { C } \text { plus: }\\
• \begin{array} { l l }
• \text { Dr. Deferred Tax Asset } & \$ 600 \\
• \text { Cr. Income Tax expense } & \$ 600 \\
• \text { Dr. Income Tax expense } & \$ 600 \\
• \text { Cr. Deferred Tax Liability } & \$ 600
• \end{array}
• \end{array}\)

Recognize and apply the correct method to keep cell references constant using absolute referencing.

Understand the concept of sensitivity or what-if analysis in Excel.

Identify and correct common error indicators in Excel, such as ###### or #NAME?.

Learn how to dynamically update charts based on changes in underlying data.

---

Definitions:

Constructive Trust

A trust inferred by the courts to benefit a third party to a contract.

Misrepresentation Remedies

Legal solutions available to someone who has suffered loss due to false statements, including rescission of contract or damages.

Modern Business

Contemporary commercial activities characterized by innovations, digital processes, and new operational models.

Assignment

The transfer of rights or property from one party to another, often used in reference to contracts or leases.