In the First Month of Operations, the Total of the Debit

question 209

Multiple Choice

In the first month of operations, the total of the debit entries to the Cash account amounted to $1,200 and the total of the credit entries to the Cash account amounted to $900. The Cash account has a

• A) $900 credit balance.
• B) $300 debit balance.
• C) $1,200 debit balance.
• D) $300 credit balance.

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Definitions:

Subsidiary's Stock

Shares owned in a company that is controlled by another entity (the parent company), often by owning the majority of its stock.

Consolidation Procedures

Accounting processes used to combine the financial statements of a parent company with its subsidiaries, presenting the group as a single economic entity.

100%-Owned Subsidiaries

Companies completely owned by another company, allowing the parent full control over operations and decisions.

Stockholders' Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership interest of shareholders.