Which Balance Sheet Accounts Are Most Affected by Investing Activities

question 113

Multiple Choice

Which balance sheet accounts are most affected by investing activities?

• A)Current assets and current liabilities
• B)Long-term assets
• C)Long-term liabilities
• D)Stockholders' equity

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Definitions:

Subsidiary Company

A company that is completely or partly owned and partly or wholly controlled by another company, known as the parent company.

Parent Company

A corporation that owns a majority of the shares of another company, thus controlling management and operations.

Controlled Company

A company in which a majority of its stock is owned or its operations are controlled by another entity.

Investee Company

A company in which another company (the investor) holds a significant stake but does not have controlling interest.