A Parent Entity Made an Advance of $50 000 to Its

question 4

Multiple Choice

A parent entity made an advance of $50 000 to its subsidiary. The parent charges interest of $3 000 on this advance. The consolidation adjustment to eliminate the advance is:

• A) Dr Interest revenue $53 000 Cr Interest expense $53 000
• B) Dr Interest expense $53 000 Cr Interest revenue $53 000
• C) Dr Advance to subsidiary $50 000 Cr Advance from parent $50 000
• D) Dr Advance from parent $50 000 Cr Advance to subsidiary $50 000

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Definitions:

Distribution Decisions

Choices made regarding the channels and processes used to deliver a product from the manufacturer to the end consumer.

Supply Chain

The entire process of making and selling goods, including raw materials, manufacturing, distribution, and sale.

Ethical Decision-making

Assessing and picking options in a process that adheres to principles of morality.

Marketing Mix

A set of controllable marketing tools (Product, Price, Place, Promotion) that a company uses to produce a desired response in the target market.