When a Parent-Subsidiary Relationship Exists Between Two Companies

question 45

Multiple Choice

When a parent-subsidiary relationship exists between two companies:

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

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Definitions:

Prediction

An assertion concerning what will occur in a particular research investigation.

Female Defendants

Women who are being accused or are on trial in a court of law for committing a crime or civil offense.

Prison Sentences

Judicially determined penalties imposed on persons convicted of a crime, requiring time to be spent in prison.

Hypothesis

A proposed explanation for a phenomenon, based on observation, that can be tested through research and experimentation.