The Current Liability Section of the Balance Sheet Should Include

question 24

Multiple Choice

The current liability section of the balance sheet should include:

• A)buildings.
• B)goodwill.
• C)land held for speculation purposes.
• D)accounts payable.
• E)None of the answers are correct.

---

Definitions:

Purchase Method

An accounting method used in mergers and acquisitions where the purchasing company records the assets and liabilities of the acquired company at fair market value.

Consolidated Balance Sheet

A financial statement that shows the aggregated financial position of a parent company and its subsidiaries.

Minority Interests

Shareholders' equity in a subsidiary not wholly owned by the parent company, representing minority shareholders' proportion.

Consolidation Adjustments

Adjustments made to the financial statements when combining the financial information of a parent company and its subsidiaries to prepare consolidated financial statements.