How Many of These Are Advantages of Maintaining a Subsidiary

question 43

Multiple Choice

How many of these are advantages of maintaining a subsidiary ledger for depreciable assets?
It provides information for the preparation of income tax returns.
It provides information to support insurance claims in the event of loss from theft or accident.
It provides information concerning servicing of the assets.
It provides information for internal control over assets.

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Market Rate

The prevailing price or interest rate at which goods, services, or securities are bought and sold in a competitive marketplace.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Present Value

The current financial worth of a prospective amount of money or sequence of monetary flows, considering a set rate of return.

Annuity

An investment vehicle that provides a steady flow of payments to a person, often utilized as a source of income for those in retirement.