When a Parent-Subsidiary Relationship Exists Between Two Companies

Multiple Choice

When a parent-subsidiary relationship exists between two companies:

A) the subsidiary company will keep one set of accounting records covering both companies.
B) the parent company will keep one set of accounting records covering both companies.
C) both the parent and the subsidiary will continue to keep their own separate accounting records as if the parent-subsidiary relationship does not exist.
D) the parent company must use the cost method to account for the subsidiary.