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hichkok12 [17]
1 year ago
6

For a specific investment in equity securities, use of the equity method tends to produce ____ financial statement results than

would using the fair value method.
Business
1 answer:
insens350 [35]1 year ago
5 0

The equity approach has a tendency to yield different financial statement outcomes for a particular investment in equity securities than the fair value technique would.

A financial investment in a firm known as an equity investment entails buying its stock on the stock market. On a stock exchange, these shares are commonly exchanged.

With the equity method of accounting, the investment is first recorded at cost and later modified to reflect changes in the investor's portion of the investee's net assets following the purchase. Investments in equity Investments with fixed returns, such as money market instruments, and debt securities such as bonds and notes (some fixed income investments, such as certificates of deposit, may not be securities at all)

Fair market value (FMV) is the cost of an asset when a buyer and a seller have reasonable knowledge of it and are ready to negotiate a price without being under any obligation. A corporation can report the earnings it makes from its investment in another business using the equity method of accounting.

To learn more about equity securities:

brainly.com/question/28069878

#SPJ4

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Answer:

2) Percentage of the typical consumer budget spent on the item.

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Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses proces
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Answer:

(1) $31,538.4; $5,328.9; $36,867.3

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Explanation:

(1) Cost of ending work in process inventory:

For materials:

= Equivalent units of production in ending work in process × Cost per equivalent unit

= 2,040 × $ 15.46

= $31,538.4

For conversion:

= Equivalent units of production in ending work in process × Cost per equivalent unit

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Total = $31,538.4 + $5,328.9

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(2) Cost of the units completed and transferred out:

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For conversion:

= Total units completed and transferred × Cost per equivalent unit

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= $120,903

Total = $326,206 + $120,903

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