An Entity That Is Holding Assets for Another Party and Has

question 3

Multiple Choice

An entity that is holding assets for another party and has legal authority and duty to make decisions regarding financial matters concerning that party is:

• A)fiduciary.
• B)accountant.
• C)attorney.
• D)manager.

---

Definitions:

Initial Value Method

An accounting approach where investments are recorded at their purchase cost without subsequent adjustment for market changes.

Consolidated Net Income

The total net income of a parent company and its subsidiaries, after eliminating the effects of intercompany transactions.

Investment Account

An account held at a financial institution that holds securities, stocks, bonds, and other investment assets.

Intangible Asset

Assets that are not physical in nature, including goodwill, software, and licensing agreements, valuable to a company's operations.