The Only Difference in the Balance Sheets of Various Types

question 94

Multiple Choice

The only difference in the balance sheets of various types of businesses (for example, manufacturing vs. service) is

• A)current liabilities.
• B)current assets.
• C)investments.
• D)equity.

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Definitions:

Acquisition

The process by which a company purchases most or all of another company's shares or assets, in order to take control or ownership of that company.

Fair Value

The cost expected to be received for an asset sale or to be paid for transferring a liability during a well-organized interaction between market actors as of the valuation moment.

Subsidiary's Equity

The portion of equity (capital and reserves) in a subsidiary company that is attributable to its owners, including both parent and non-controlling interests.

Consolidation Adjusting Entries

Adjustments made in accounting records to remove the effects of intercompany transactions during the consolidation process for a group’s financial reporting.