When an Interest Bearing Loan Is Advanced by a Parent

question 4

True/False

When an interest bearing loan is advanced by a parent to a subsidiary, there is no tax effect consolidation entry required as assets and liabilities are reduced equally.

---

Definitions:

Wavenumber

A unit of frequency used in spectroscopy, representing the number of waves per unit distance.

Arrow Pushing

A technique used in organic chemistry to describe the movement of electrons during chemical reactions.

Formal Charges

A bookkeeping tool used in chemistry to account for the distribution of electrons among atoms in a molecule, helping to identify the most stable resonance form.

Nucleophilic Acyl Substitution

A reaction where a nucleophile replaces the leaving group in an acyl compound.