Which One of the Following Accounts Would Not Appear on the Consolidated

question 38

Multiple Choice

Which one of the following accounts would not appear on the consolidated financial statements at the end of the first fiscal period of the combination?

• A)Goodwill.
• B)Equipment.
• C)Investment in Subsidiary.
• D)Common Stock.
• E)Additional Paid-In Capital.

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Definitions:

Accounts Payable

Liabilities or amounts owed by a company to its creditors for goods or services that have been delivered but not yet paid for.

Depreciation Expense

The portion of the cost of a fixed asset that is considered consumed during a specific accounting period, used to reflect wear and tear.

Accounts Receivable

Amounts due from customers to an enterprise for delivered but unpaid goods or services.

Fire Insurance

A type of property insurance that covers damage and losses caused by fire.