If a Parent Company and Its Subsidiary Have Accounts Receivable

question 93

Multiple Choice

If a parent company and its subsidiary have accounts receivable from mutually exclusive external sources in the amounts of $35,000 and $20,000,respectively,the consolidated balance sheet for the parent and its subsidiary will show:

• A) one accounts receivable balance of $55,000
• B) only the parent's accounts receivable balance
• C) net accounts receivable of $15,000
• D) both amounts, but it will list them in two separate accounts

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Definitions:

Objective

Unbiased and not influenced by personal feelings or opinions in considering and representing facts.

Introverted Feeling

A cognitive function characterized by deep, introspective emotions and decisions based primarily on personal values and feelings.

Collective Unconscious

A concept proposed by Carl Jung, referring to the part of the unconscious mind which is derived from ancestral memory and experience and is common to all humankind.

Libido

Within the framework of psychoanalytic theory, the force of the sexual urge is considered a part of the life instinct.