If a Parent Company and 100% Owned Subsidiary Have Accounts

question 27

Multiple Choice

If a parent company and 100% owned subsidiary have accounts receivable balances of $350,000 and $100,000,respectively,and included in the parent company's accounts receivable is a $50,000 amount due from the subsidiary,then the consolidated balance sheet for the parent and its subsidiary will show:

• A) both amounts, but it will list them in two separate accounts to help investors better understand the financial statements
• B) one accounts receivable balance of $450,000
• C) only the parent's account receivable balance
• D) one accounts receivable balance of $400,000

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Definitions:

Cystitis

Inflammation of the urinary bladder.

Artificial Veins

Synthetically made veins used to replace or bypass damaged or diseased veins, commonly applied in medical procedures to restore normal blood flow.

Dialysis

Removal of the products of urine from the blood by passage of the solutes through a membrane.

Cystitis

An inflammation of the bladder, often caused by a bacterial infection, leading to symptoms such as frequent urination and pain.