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:

Language Growth

The process of acquiring and expanding language skills, encompassing vocabulary, grammar, and communication abilities.

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Refers to the early stages of human development, typically considered from birth to around 8 years old.

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The act of copying the behavior, actions, or expressions of another individual.