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hichkok12 [17]
2 years 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]2 years 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

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Answer:

The correct answer is letter "D": the quantity demanded of cereal will increase.

Explanation:

According to the demand theory, as long as the quantity demanded increases, the price would decrease (the demand curve shifts to the right). The quantity demanded decreases when the price would increase (the demand curve shifts to the left).

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M. Bot Corporation has 10,000 shares of 8%, $100 par value, cumulative preferred stock outstanding at December 31, 2022. No divi
Andru [333]

Answer:

$135000

Explanation:

Given: Outstanding cumulative preferred stock of 10000 shares of 8% at $100

            Dividend paid= $375000.

Now, calculating preferred stock.

Preferred stock= (10000 shares\times $100\times 8\%)= \$ 80000

∴ Preferred stock= $80000

Cumulative dividend paid to shareholder= (80000\times 2 + 80000) = \$ 240000.

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Next, computing the amount of dividends will common stockholder receive.

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