Which of the Following Accounts Is Least Likely to Be

question 21

Multiple Choice

Which of the following accounts is least likely to be used by a tax agency fund?

• A) Cash.
• B) Revenues.
• C) Taxes receivable for other funds.
• D) Due to other governments.

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Definitions:

Equity Method

An accounting technique used by a company to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted for the investor’s share of the investee’s net assets and income.

Investment Balance

The amount currently held in investment accounts, reflecting gains, losses, and contributions to date.

Consolidations

The process of combining multiple financial statements or businesses into one comprehensive financial report or corporate entity, typically to provide a more unified view of financial performance or corporate structure.

Goodwill Impairment

The decrease in the value of goodwill on a company's balance sheet when the carrying amount exceeds the fair value.