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2 years ago

A necessary condition to use the equity method of reporting for an equity investment is that the investor company must:____.

1 answer:

4 0

The ability of the investor business to exert significant influence over the operating and financial policies of the investee is a requirement for using the equity method of reporting an equity investment.

A business uses the equity method as an accounting approach to record the earnings made by its investment in another business. The investor firm declares the revenue generated by the other company on its income statement using the equity method of accounting, in a proportional amount to the equity stake it has in the other company. When a firm has significant control over the company it is investing in, the equity method is used to value the investment.

Learn more about the equity method here.

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Following the imposition of a price floor $2 above the equilibrium price, irate buyers convince Congress to repeal the price flo

andrey2020 [161]

Answer:

Explanation:

A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.

Equilibrium price is the price at which quantity demand equal quantity supplied. Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded.

Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied

Shortage = $12 - $9 = $3

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3 years ago

3. Franchising is widely used in the casual dining and fast food industry, yet Starbucks is quite successful with a large number

Softa [21]

Starbucks doesn't franchise.

Explanation:

Starbucks doesn't franchise because they want to run their own stores and can control the quality and profits.

In addiction, franchising is a way for companies to expand fast with less money. Starbucks is relying on their name to continue its success and growth. According to Starbuck's investor report , "Seattle's best coffee brand does offer franchise opportunities to qualified and select applicants , using a predefined set of criteria and focusing on multi-unit franchisees with a proven track record of success."

Starbucks pursues join ventures. Starbucks can be found in several grocery stores and retail stores. Starbucks has the name tights but it is using the location of these venues to promote the product and introduce new customers in the Starbuck's pool.

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3 years ago

Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeM

Step2247 [10]

Answer:

Total cash receipts in October = $137,300

Total cash receipts in November = $120,825

Total cash receipts in December = $164,925

Explanation:

As per the data given in the question,

Total cash receipts in October = Cash sales in October + September sales collection in October + October sales collection in October

= $108,000 × 30% + $86,000 + $108,000 ×70% × 25%

= $137,300

Total cash receipt in November = Cash sales in November + October sales collection in November + November sales collection in November

= $135,000 × 30% + $108,000 × 70% × 75% + $135,000 × 70% × 25%

= $120,825

Total cash receipt in December = Cash sales in December + November sales collected in December + December sales collected in December

= $198,000×30% + $135,000 × 70% × 75% + $198,000 × 70% × 25%

= $164,925

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4 years ago

Two ways in which entrepreneurship can help to combat unemployment and improve the economy of south africa

zmey [24]

<span>One is through innovation. New innovation meant new jobs for the nation. One example is Bheki Kunene, a young entrepreneur of South Africa. At age 27, he founded Mind Trix Media providing jobs and a profit. Next is it improves economy by being able to partner with big companies in the other countries.</span>

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3 years ago

The general expenses necessary to run the business are called Question 30 options: operating expenses. annual projections. 10-ye

sleet_krkn [62]

Answer:

Operating expenses

Explanation:

Before a business yields a profit as an output , there is a need for some input from the business owners. One of these input is operating expenses .

Operating expenses is supporting cost of keeping the business running in the course of normal production , different from the cost of production and is necessary as every form of other cost may not get a desired result without the operating cost.

Examples include rent , payroll ,transportation , security fees among others.

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4 years ago