Which of the Following Would Be Disclosed in the Summary

question 50

Multiple Choice

Which of the following would be disclosed in the Summary of Significant Accounting Policies?

• A)composition of inventories
• B)details of a related party transaction
• C)definition of cash equivalents
• D)maturity dates of long-term debt

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Definitions:

Transfer Date

The specific date on which the ownership or control of an asset is transferred from one party to another.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after eliminating intercompany transactions, presented as a single figure.

Downstream Transfer

Transactions where a parent company sells or transfers assets to its subsidiary.

Straight-Line Method

An accounting method of depreciation where the value of a fixed asset is reduced uniformly over its useful life.