A Consolidated Balance Sheet Shows

question 101

Multiple Choice

A consolidated balance sheet shows:

• A) combined long-term assets, long-term liabilities and stockholders' equity for the parent and subsidiary.
• B) combined assets and liabilities for the parent and the subsidiary, but stockholders' equity for solely the parent .
• C) combined assets, liabilities and stockholders' equity for the parent and subsidiary.
• D) combined assets and stockholders' equity for the parent and the subsidiary, but liabilities for solely the parent.

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Definitions:

Parts Resale Value

The estimated resale value of machine parts or other components after they have been used or at the end of their useful life.

CCA Rate

Capital Cost Allowance Rate, the rate at which a business can claim depreciation on capital assets for tax purposes in certain jurisdictions.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Depreciation Tax Shield

The reduction in taxable income for businesses that results from claiming depreciation expenses, thereby lowering tax liabilities.