Listed Below Are Five Terms Followed by a List of Phrases

question 30

Multiple Choice

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Losses

• A)Net outflows from peripheral transactions.
• B)Probable future economic benefits controlled by an entity.
• C)Results if an asset is sold for more than book value.
• D)Increases in equity from the sale of goods and/or services.
• E)All changes in equity except owner transactions.

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Definitions:

Investee

A company in which another entity has invested, granting the investor a level of influence or control over its operations.

Related Expense

Costs that are directly connected to or a result of a specific business activity or operation.

Subsidiary Contract

An agreement or contract involving a company that is controlled by another parent company.

Initial Value Method

An accounting practice for investment recording wherein the investment is kept at its original cost on the balance sheet without adjusting for changes in net income of the investee.