A Residual Interest Is

question 70

Multiple Choice

A residual interest is:

• A) a claim to a fixed percentage return on the amount invested.
• B) a priority claim over the assets of the entity as the right of an owner.
• C) a claim or right to the net assets of the reporting entity.
• D) the minimum entitlement of the holder of the interest.

---

Definitions:

Adjusting Entries

Entries in the books of accounts made during the final part of an accounting cycle to distribute profits and costs to their rightful period.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts.

Adjusting Entries

Records entered into accounting logs at the close of an accounting period to assign earnings and expenses to the period they truly happened.

Worksheet

A document or spreadsheet used in accounting to compile data and calculations for reporting purposes.