Match the Following Terms with the Appropriate Definitions

question 3

Multiple Choice

Match the following terms with the appropriate definitions.
-Financial statements that show the financial position,results of operations,and cash flows of all entities under the parent's control,including those of any subsidiaries.

• A)Available-for-sale securities
• B)Equity method
• C)Parent company
• D)Consolidated financial statements
• E)Long-term investments
• F)Unrealized gain (loss)
• G)Trading securities
• H)Return on total assets
• I)Subsidiary
• J)Held-to-maturity securities

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Definitions:

Income Summary

An account to which all revenues and expenses are transferred, to summarize the income or loss for a reporting period before transferring the balance to retained earnings or capital accounts.

Unearned Revenue

Unearned revenue represents money received by an entity for a service or product that has yet to be provided or delivered. It is recorded as a liability on the balance sheet.

Capital Account

An account showing the net worth of a business at a specific point in time, reflecting owners' equity and investments.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments, used to prepare financial statements.