If a Parent Company and Its Subsidiary Have Accounts Receivable

question 121

Multiple Choice

If a parent company and its subsidiary have accounts receivable from mutually exclusive external sources in the amounts of $155,000 and $145,000, respectively, the consolidated balance sheet for the parent and its subsidiary will show:

• A)only the parent's accounts receivable balance.
• B)one accounts receivable balance of $300,000.
• C)net accounts receivable of $10,000.
• D)both amounts, but it will list them in two separate accounts.

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Definitions:

Aldehyde

Organic compounds characterized by the presence of a carbonyl group (C=O) with at least one hydrogen atom attached to the carbon.

Ketone

A class of organic compounds characterized by a carbonyl group (C=O) bonded to two carbon atoms.

Terpene

A large and varied class of organic compounds, produced primarily by a wide variety of plants, known for their strong odors.

Fatty Ester

An organic compound formed by the reaction of a fatty acid with an alcohol, commonly found in lipids and essential for various biological functions.