Which of the Following Entries Would Not Require an Eliminating

question 37

Multiple Choice

Which of the following entries would not require an eliminating entry when one is preparing consolidated financial statements?

• A) Amount owed by subsidiary to parent
• B) Investment in subsidiary
• C) Amount owed by parent to subsidiary
• D) Sale to customer

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Definitions:

Reciprocation

Reciprocation involves the mutual exchange of actions, goods, services, or feelings, often as part of social or relationship norms.

Disrupt-then-reframe Technique

A persuasive strategy involving the initial disruption of normal thought processes followed by offering a new frame or perspective that makes the initial proposition more acceptable.

Pique Technique

Influence technique in which one captures people’s attention, as by making a novel request.

Foot-in-the-door Technique

A persuasion strategy where one starts with a small request to increase the likelihood of agreement to a larger request later.