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:

Savanna

A tropical grassland containing scattered trees; found in areas of low rainfall or seasonal rainfall with prolonged dry periods.

Tundra

(tundra) A treeless biome between the boreal forest in the south and the polar ice cap in the north that consists of boggy plains covered by lichens and small plants. Also called arctic tundra. Compare with alpine tundra.

Temperate Desert

A type of desert found in temperate climates, characterized by relatively low temperatures compared to tropical deserts.

Climax Community

The final, stable community in succession that remains relatively unchanged until disrupted by an event like fire or human interference.