When Preparing a Consolidated Balance Sheet

question 97

Multiple Choice

When preparing a consolidated balance sheet:

• A) the shareholders' equity of the parent will be eliminated but investment in subsidiary will be presented
• B) both investment in subsidiary and the shareholders' equity of the parent will be eliminated
• C) neither investment in subsidiary nor the subsidiary's shareholders' equity will be presented
• D) investment in subsidiary will be presented but the shareholders' equity of the subsidiary will be eliminated

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Definitions:

Finance Charges

The total cost of borrowing, including interest and any other charges assessed by the creditor.

APR

The Annual Percentage Rate, a measure used to calculate the cost of borrowing, including interest and other fees, shown as a yearly rate.

Payday Loan

A type of short-term borrowing where a lender provides high-interest credit based on a borrower's income and credit profile, typically to be repaid by the next payday.

Average Daily Balance

The average amount owed per day during a billing cycle.