Which of the Following Is an Example of an Equity

question 7

Multiple Choice

Which of the following is an example of an equity?

• A)A thirty-year U.S. government bond
• B)A thirty-year corporate bond
• C)A checking account in a commercial bank
• D)A share of common stock in General Motors

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Definitions:

Indirect NCI

Non-controlling interest (NCI) that is not directly held by another entity but is held through one or more intermediaries.

Pre-acquisition Equity

The equity value of a company before it is acquired by another firm, used to assess the financial position prior to the acquisition.

Multiple Consolidation Method

A financial accounting approach used to combine the financial statements of multiple entities within a corporate group, considering complex ownership structures.

Multiple Consolidation Method

A technique in accounting that allows for the combination of financial statements from different entities within a group, through methods such as equity or proportional consolidation.