If a Parent Company Borrows Money from Its Subsidiary,what Effect

question 24

Multiple Choice

If a parent company borrows money from its subsidiary,what effect (if any) will this have on the non-controlling interest?

• A)This would have no effect on the non-controlling interest.
• B)The subsidiary would book its pro-rata share of any interest revenue.
• C)The non-controlling interest Balance would be reduced by the amount of the loan.
• D)The subsidiary would record any interest revenue as an extraordinary gain.

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Definitions:

Vestibular System

The sensory system that contributes to balance and spatial orientation for the purpose of coordinating movement with balance.

Action Potentials

Electrical impulses that are part of the process that cells use to communicate with each other, crucial for the functioning of nerves and muscles.

Unilateral Damage

Harm or injury to one side of the body or brain, affecting one half of the body or one of a pair of bodily organs.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem down to the lower back, and is a major part of the central nervous system.