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:

Plantar Reflex

A reflex elicited by stroking the sole of the foot, used to assess the integrity of the spinal cord and higher brain centers; a normal response curls the toes, while the Babinski sign indicates neurological concerns.

Biceps Reflex

A reflex test that evaluates the function of the spinal cord by striking the biceps tendon and observing arm movement.

Sigmoidoscopy

A medical procedure involving the examination of the lower part of the large intestine using a flexible tube with a light and camera.

Urinalysis

A diagnostic test analyzing urine for the presence of diseases, infections, or other medical conditions.