What Does an Entity Relationship Diagram Represent? Why Do Accountants

question 101

Essay

What does an entity relationship diagram represent? Why do accountants need to understand them?

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Definitions:

Fair Value

Fair Value is the estimated market value of an asset or liability, based on current prices in an open market, used for financial reporting.

Gain Recognized

The profit that is realized and reported on the financial statements when an asset is sold for more than its carrying amount.

Transfer Date

The specific date on which the ownership or control of an asset is transferred from one party to another.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after eliminating intercompany transactions, presented as a single figure.