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:

AFL

Stands for the American Federation of Labor, a national federation of labor unions in the United States, founded in 1886, and known for focusing on skilled workers.

Union Federation

An organization that represents multiple labor unions, coordinating their actions and policies at a regional, national, or international level.

Great Uprising

Refers to significant or notable revolts, rebellions, or movements, often related to worker or social uprising seeking rights or reforms.

Labor-Management Relations

The interactions between employees, often represented by unions, and employers, focusing on negotiating wages, work conditions, and other aspects of workers' compensation and rights.