If a Parent Company and Its 100% Owned Subsidiary Have

question 73

Multiple Choice

If a parent company and its 100% owned subsidiary have accounts receivable from external sources in the amounts of $35,000 and $10,000,respectively,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 $45,000
• C) only the parent's account receivable balance
• D) net accounts receivable of $25,000

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Definitions:

Opportunity Cost

The loss incurred from discarding the next top option available when a choice is made.

Milkshake

A sweet, cold beverage made from milk, ice cream, and flavorings or sweeteners such as butterscotch, caramel sauce, chocolate syrup, or fruit syrup.

Tacos

A traditional Mexican dish consisting of a corn or wheat tortilla folded or rolled around a filling.

Budget Line

A visual depiction showcasing all the potential pairings of two items that can be bought within a specific budget at fixed prices.