JoJo Ltd Provided an Advance of $500 000 to Its

question 19

Multiple Choice

JoJo Ltd provided an advance of $500 000 to its subsidiary BoBo Ltd.Interest of $50 000 was charged during the year ended 30 June 20X8.On consolidation the following adjustment is needed at 30 June 20X8 in relation to the interest charged:

• A)no adjustment needed;
• B)DR Interest revenue $50 000 CR Interest expense $50 000
• C)DR Interest expense $50 000 CR Interest revenue $50 000
• D)DR Retained earnings $50 000 CR Cash $50 000

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Definitions:

Conditioning

A process of behavioral modification where a response becomes more frequent or predictable in a given environment due to reinforcement or association with a stimulus.

Metronome

A device used by musicians to mark time at a selected rate by giving a regular tick sound at adjustable intervals.

Biscuit

A small baked product that varies in texture and flavor across different cultures, typically soft and flaky in the USA and crunchy in the UK.

Conditioned Response

The learned response to a previously neutral stimulus after it has been paired repeatedly with an unconditioned stimulus.