Branch Inc

question 11

Multiple Choice

Branch Inc.is a subsidiary of Tree Corporation.What method of accounting must Tree Corporation use for Branch Inc.?

• A)Consolidation method
• B)Equity method
• C)Cost method
• D)Fair value method

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Definitions:

Cash Flow

The broad sum of financial activities entering and exiting a business, influencing its ability to maintain liquid assets.

Stockholders

Individuals or institutions that own shares in a corporation, giving them ownership rights and potential financial benefits.

Cash Flow

The full extent of monetary movement into and out of a commercial entity, affecting its capacity to liquidate quickly.

Stockholders

Individuals or entities that own shares in a corporation, holding a stake in the company's equity.