When Preparing a Consolidated Balance Sheet Worksheet When the Investment

question 1

Multiple Choice

When preparing a consolidated balance sheet worksheet when the investment account is maintained under the simple equity method:

• A)​the parent's share of subsidiary income should be eliminated against retained earnings.
• B)​the parent's share of the subsidiary's equity accounts may be eliminated directly against the investment account.
• C)​any intercompany sales must be eliminated against cost of goods sold.
• D)​the investment account should be converted to the cost method as of the end of the year.

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Definitions:

Clock Speed

The speed at which a processor executes instructions, measured in cycles per second or hertz (Hz).

Optical Storage

A type of storage medium that uses lasers and lights to read and write data on discs like CDs, DVDs, and Blu-ray.

Flash Drive

A drive that plugs into a universal serial bus (USB) port on a computer and that stores data digitally. Also known as jump drive, USB drive, or thumb drive.

CPU Usage

The amount of processing power that a computer's central processing unit (CPU) is using at any given time, typically expressed as a percentage.