Financial Accounting

question 66

Multiple Choice

Financial accounting:

• A) focuses on the future.
• B) must comply with GAAP (generally accepted accounting principles).
• C) reports include detailed information on the various operating segments of the business.
• D) is prepared for the use of management.

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Definitions:

Straight Line Amortization

A method of allocating the cost of an intangible asset over its useful life in equal annual installments.

Effective Tax Rate

The actual rate at which an individual or a corporation is taxed, calculated by dividing the total tax paid by the taxable income.

Consolidated Balance Sheet

A financial statement showing the combined assets, liabilities, and equity of a parent company and its subsidiaries.

Non-controlling Interest

A shareholder's equity in a subsidiary that is not attributable to the parent company, representing minority ownership.