Listed Below Are Five Terms Followed by a List of Phrases

question 119

Multiple Choice

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Error corrections

• A)Involves consolidated financial statements.
• B)The approach used for changes in depreciation methods.
• C)Accounting changes always handled retrospectively.
• D)Required for all material accounting changes and error corrections.
• E)Most are handled under the retrospective approach.

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Definitions:

Certificate of Indebtedness

A type of financial instrument indicating the holder is owed a debt by the issuer, typically with terms specifying the repayment of the principal and interest.

Bonds

Debt securities issued by entities such as governments or corporations to raise capital, promising to repay the principal along with interest at a future date.

Private Saving

The portion of households' income that is not consumed or paid in taxes, and is instead saved.

Investment

The action of allocating resources, usually money, with the expectation of generating an income or profit, often through the purchase of assets that are expected to increase in value.