To Calculate Your Net Worth, You Need to Know Your

question 13

Multiple Choice

To calculate your net worth, you need to know your:

• A)annual income
• B)assets and liabilities
• C)monthly car loan cost
• D)income after tax
• E)pension contributions

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Definitions:

Non-controlling Interest

Equity interest in a subsidiary held by investors other than the parent company, representing their claim to the subsidiary's earnings and assets.

Entity Method

an approach in accounting where the financial transactions of a parent company and its subsidiaries are kept separate, instead of being consolidated.

Consolidated Shareholders' Equity

Represents the total equity interest in a company, including common stock, preferred stock, retained earnings, and accumulated other comprehensive income, as shown in the consolidated financial statements.

Parent-Company Extension Method

A method in accounting where the parent company extends its financial statements to include the financial activities of its subsidiaries as if they are part of the parent company itself.