Big Company Owns 100% of the Outstanding Common Stock of Small

question 163

Multiple Choice

Big Company owns 100% of the outstanding common stock of Small Company.Small Company borrowed $10,000 from Big Company.What elimination entry is required for this transaction?

• A)debit Note Payable for $10,000 and credit Note Receivable for $10,000
• B)debit Note Receivable for $10,000 and credit Note Payable for $10,000
• C)debit Common Stock for $10,000 and credit Note Receivable for $10,000
• D)debit Note Payable for $10,000 and credit Investment in Subsidiary for $10,000

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Definitions:

Synthetic Pesticides

Man-made chemicals used to kill or control pests that affect plants, animals, and humans.

Genetic Resistance

The ability of an organism to naturally resist diseases, pests, or harsh environmental conditions due to its genetic makeup.

Genetic Resistance

indicates an organism's inherent ability to resist or tolerate infection, parasites, or chemical treatments, often as a result of specific genetic characteristics.

DDT

A colorless, tasteless, and almost odorless crystalline chemical compound, historically used as a pesticide but now banned in many countries due to its environmental impact.