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zloy xaker [14]
3 years ago
12

Silvia Company acquires a 30% interest in Small Company. The fair value of Small's inventory exceeds its carrying value by $100,

000. During the subsequent year, the inventory is sold. As a result of the sale of inventory, investment revenue would _______.
Business
1 answer:
beks73 [17]3 years ago
7 0

Answer:

The revenue that the investment in the company would increase by $100,000.

Explanation:

Though the International Accounting Standard IAS 2 Inventories says that the inventory must be recorded at lower of:

  • Cost
  • Net Realizable Value (Fair Value less Cost to Sell)

This means though the Net realizable value increases but the cost remains the lower. This means their must not be any changes made to inventory account.

The profit earned from the increase in inventory value will be reflected in the income which will increase the net worth of the investment. So the increase in investment revenue would be by $100,000.

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Answer:

The option which is an example of a debt funding source can be banks, credit unions, or any external lender.

Explanation:

  • Debt funding is when a company raises money by marketing bonds, bills and notes, etc. to the investors
  • It differs from equity financing which is selling shares of the company.
  • Debt funding must be paid back at an previously agreed date.
  • If the business goes under, then the lenders have more rights on the property that will be liquidated than the share holders.
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3 years ago
During July at Pool Company, $65,000 of raw materials were requisitioned from the storeroom for use in production. These raw mat
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Answer:

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Preparation of the journal entry.

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Karen is designing a process for issuing checks and decides that one group of users will have the authority to create new payees
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Answer:

D. Separation of Duties

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Separation of duties also know as segregation of duties refuses that one person he responsible of acquisition of assets, their custody and related record keeping. The process in which Karen is using to prevent fund by separating individuals who as the authority to issue checks is known as separation of duties. It is a form of internal control aimed at reducing risk of errors and frauds.

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Answer:

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Explanation:

See attached picture for explanation.

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Alenkinab [10]

Answer:

A. ethnographic research

Explanation:

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