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:

Standard Deviation

The positive square root of the variance.

Option Theta

A measure of the rate of decline in the value of an option due to the passage of time.

Time To Expiration

Time to expiration refers to the remaining period until the expiration date of a financial contract, such as an option or futures contract.

Put-Call Parity

Put-Call Parity is a principle stating the relationship between the prices of European put and call options with the same strike price and expiration.