When a Parent-Subsidiary Relationship Exists Between Two Companies

question 34

Multiple Choice

When a parent-subsidiary relationship exists between two companies:

• A)the subsidiary company will keep one set of accounting records covering both companies.
• B)the parent company will keep one set of accounting records covering both companies.
• C)both the parent and the subsidiary will continue to keep their own separate accounting records as if the parent-subsidiary relationship does not exist.
• D)the parent company must use the cost method to account for the subsidiary.

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Definitions:

Chronic Illness

A long-lasting health condition that requires ongoing medical attention or limits daily activities.

Gender Discrimination

The unfair treatment or bias against individuals based on their gender, affecting opportunities, resources, and rewards.

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