On the Consolidated Statement of Financial Position, Which Balances Differ

question 38

Multiple Choice

On the consolidated statement of financial position, which balances differ between the parent-company extension method and the entity method?

• A)Retained earnings and goodwill
• B)Retained earnings and non-controlling interest
• C)Goodwill and non-controlling interest
• D)Common shares and retained earnings

---

Definitions:

Loanable Funds

The money available for borrowing in the economy, which comes from savings and is used for investments and other purposes.

Supply Slopes

This term might be mistaken, but it likely refers to the representation of supply in economics, which traditionally slopes upward on a graph, indicating that as prices increase, suppliers are willing to provide more goods.

Financial Intermediaries

Entities such as banks and credit unions that serve as middlemen in financial transactions, facilitating funds' flow between savers and borrowers.

Bond Buyer

An investor or entity that purchases bonds, which are debt securities issued by corporations or governments.