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In a combined statement of financial position the liabilities and net assets section why are total liabilities and unrestricted net assets added together?
Because Assets = Liabilities + Equity. (Net Assets is equity ... with a fancy name and broken into components.) And just to clarify:
1. It's Total Liabilities + Total Net Assets - not just unrestricted net assets, unless you're using a prescribed form that deviates from GAAP. 2. This is regardless of the statement being combined / consolidated, etc. Assets = Liabilities + Net Assets (Equity).... keep it simple and you woun't get confused!
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What is a consolidated financial statement?
it is combined statement of parent company and subsidary company
What are the combined financial statement of a parent company and its subsidiaries is what?
The combined financial statements of a parent company and its subsidiaries are known as consolidated financial statements. These statements present the financial position and results of operations of the entire corporate group as a single entity, eliminating intercompany transactions and balances to provide a clear view of the group's overall financial health. Consolidated financial statements typically include a consolidated balance sheet, income statement, and cash flow statement. They are essential for stakeholders to assess the performance and financial stability of the parent company and its subsidiaries collectively.
What is journal entry to combine company assets?
Debit combined assetsCredit combined liabilities
What is journal entry in merger in transferee company?
Debit combined assetsCredit combined liabilities
What is combined leverage?
Combined leverage is the combined result of operating leverage and financial leverage.
A combined financial statement of a parent company and its subsidiaries is called?
a consolidated financial statement
What is a consolidated financial statement?
it is combined statement of parent company and subsidary company
A combined statement of a parent company and its subsidiary is called?
a consolidated financial statement
What are the combined financial statement of a parent company and its subsidiaries is what?
The combined financial statements of a parent company and its subsidiaries are known as consolidated financial statements. These statements present the financial position and results of operations of the entire corporate group as a single entity, eliminating intercompany transactions and balances to provide a clear view of the group's overall financial health. Consolidated financial statements typically include a consolidated balance sheet, income statement, and cash flow statement. They are essential for stakeholders to assess the performance and financial stability of the parent company and its subsidiaries collectively.
What is journal entry to combine company assets?
Debit combined assetsCredit combined liabilities
What is journal entry in merger in transferee company?
Debit combined assetsCredit combined liabilities
What is combined leverage?
Combined leverage is the combined result of operating leverage and financial leverage.
How do you write a financial future for a business plan?
it is called a "proforma." it looks like an income statement covering 5 yrs, 1-3 yrs, by the year and last 2, combined
What is a unconsolidated balance sheet?
When there is parent subsidiary relationship exists and in that case if separate financial statements are prepared by both parent and subsidiary company those statements are called unconsolidated statements.
What is materiality and inmateriality in an audit?
Materiality is the magnitude of an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement. While that the relevant financial statement bases and presumptions on the effect of combined misstatements or omissions that would be considered Immaterial. It does not affect the financial statement.
What is a financial statement?
it is combined statement of parent company and subsidary company
Is telephone utilities?
Telephone Expense could be included under Utilities Expense for Financial Statement purposes. However, both telephone and gas/electric are usually substantial enough to warrant their own accounts, along with Other Utilities (water, sewer, etc) - the three accounts being combined as Utilities Expense on the Income Statement.
