The Following Information Applies to Questions 21-26

question 29

Multiple Choice

The following information applies to Questions 21-26
On December 31, 20X8, X Company acquired controlling ownership of Y Company. A consolidated balance sheet was prepared immediately. Partial balance sheet data for the two companies and the consolidated entity at that date follow:
During 20X8, X Company provided consulting services to Y Company and has not yet paid for them. There were no other receivables or payables between the companies at December 31, 20X8.

-Based on the information given,what balance in accounts receivable did Y Company report at December 31,20X8?

• A) $28,000
• B) $48,000
• C) $40,000
• D) $38,000

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Definitions:

Personal

Relating to or affecting an individual directly; not related to or representative of anything larger or external to oneself.

Psychological

Pertaining to the mind and mental processes, influencing or influenced by emotional and cognitive factors.

Maslow Hierarchy

A psychological theory proposed by Abraham Maslow, categorizing human needs into five levels ranging from basic (such as physiological needs) to higher needs (like self-actualization).

Physiological

Pertaining to the field of biology focused on the regular operations of living beings and their components.