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Barney, an admissions officer, is interviewing a college applicant about whom he has very high positive expectations. Barney is outgoing and cheerful during the interview, spends considerable time recruiting the applicant, and asks the applicant questions that solicit positive information. As a result, Barney is pleased with the applicant's performance and admits her to the school. This interview process demonstrates an example of
Elimination
The process of removing internal transactions or balances when preparing consolidated financial statements to avoid double counting.
Dividend Elimination
The process of removing the effects of dividends paid by subsidiaries to the parent from consolidated financial statements to avoid double counting.
Deferred Tax Asset
An accounting term for taxes that have been accrued but not yet paid, potentially reducing future tax obligations.
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