The Following Accounts Were Noted in Reviewing the Trial Balance

question 15

Multiple Choice

The following accounts were noted in reviewing the trial balance for Parent Co.and Subsidiary Corp.:
Assets under Construction
Contracts Receivable
Billings on Construction in Progress
Earned Income on Long-Term Contracts
Contracts Payable If these accounts pertain to a contract where Subsidiary Corp.is building an asset for Parent Co., which of these accounts do you expect to eliminate when producing Parent Co.consolidated financial statements?

• A)Assets under Construction; Billings on Construction in Progress; Earned Income on Long-Term Contracts
• B)Contracts Receivable; Billings on Construction in Progress; Earned Income on Long-Term Contracts
• C)Assets under Construction; Contracts Receivable; Billings on Construction in Progress; Earned Income on Long-Term Contracts; Contracts Payable
• D)Contracts Receivable; Billings on Construction in Progress; Earned Income on Long-Term Contracts; Contracts Payable

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Definitions:

Orders

Directions or instructions that dictate a specific action or response to be taken.

Influencing Conformity

The process by which individuals adjust their behaviors, attitudes, or beliefs to match those of a group or to meet group standards.

Conformity

The act of matching attitudes, beliefs, and behaviors to what is considered normal or standard in a specific social group.

Asch

Refers to Solomon Asch, the psychologist famous for his research on conformity, including his experiment demonstrating how group pressure can lead individuals to conform to an incorrect answer.