Subsidiary Company Borrowed $75,000 from Parent Company on a Note

question 8

Multiple Choice

Subsidiary Company borrowed $75,000 from Parent Company on a note payable during the year. Before the consolidation entries were made on the worksheet, the balances in Parent Company's Notes Receivable and Notes Payable accounts were $175,000 and $255,000, respectively. A consolidated balance sheet shows:

• A)Notes Receivable of $175,000 and Notes Payable of $330,000.
• B)Notes Receivable of $250,000 and Notes Payable of $255,000.
• C)Notes Receivable of $100,000 and Notes Payable of $255,000.
• D)Notes Receivable of $175,000 and Notes Payable of $180,000.

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Definitions:

DEPT-135

An NMR spectroscopy technique that distinguishes between carbon atoms attached to hydrogen atoms, depending on the number of hydrogen atoms (CH, CH2, or CH3).

Quaternary

Referring to carbon atoms bonded to four different groups, especially relevant in organic chemistry when discussing carbon structure and stereochemistry.

Bootstrap Distribution

A distribution obtained by repeatedly sampling, with replacement, from a sample dataset to estimate the shape of the population distribution.

Bias

A systematic error or deviation from the truth in results or inferences, which can occur in the collection, analysis, interpretation, or review of data.