The process wereby banks make loans equal to amount of their excess recerves and create new checkbook money is known as multiple deposit creation each time a bank recieves a deposit it sets aside some of it to meet reserve requirements and may lend an amount equal to the remaing excess reserves
Answer:
- c. Any pattern, particularly with audience involvement
- a. Warm, pleasant, and open
Explanation:
As this is a follow-up presentation, it would be best to find out how the participants have fared in relation to the subject since the last presentation. For this reason, the main focus is audience involvement so any patter is fine so long as audience participation is emphasized.
The delivery style that would best work here is a warm, pleasant and open one. This would encourage audience involvement and it can be more easily pulled off because you have good relationships with all the registered participants.
Answer: (a) Retained earnings = Equity.
(b) Sales = Revenues.
(c) Additional paid-in capital = Equity.
(d) Inventory = Assets.
(e) Depreciation = Expenses.
(f) Loss on sale of equipment = Losses.
(g) Interest payable = Liability.
(h) Dividends = Dividends payable are a liability. Dividends paid are a decrease in the accumulated results of the company as they are distributed to the owners.
(i) Gain on sale of investment = Gains.
(j) Issuance of common stock = are investments by the owners that become part of the capital.
Answer:
A Report your perceptions
Explanation:
Answer:
a. $4.4 million
Explanation:
a. For computing the cost of the goodwill, first we have to calculate the fair value of the net asset which is shown below:
The fair value of net asset = The market value of Red River Chips' assets - the market value of liabilities
= $7 million - $6.2 million
= $0.8 million
And, the purchase value of Red River Chips for cash is $5.2 million
So, the goodwill would be
= $5.2 million - $0.8 million
= $4.4 million
b. Goodwill is an intangible asset that is recorded in the asset side of the balance sheet. It is used for impairment tests annually. Since the fair value is less than the carrying value so the journal entry would be
Loss on impairment A/c Dr XXXXX
To Goodwill A/c XXXXX
(Being loss on impairment is recorded)
