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Strike441 [17]
3 years ago
10

The cleanest, most comfortable restaurant in town and the staff is always impeccably dressed and very courteous. Based on this f

eedback, the White Hall Inn would receive high marks on which service quality dimension?
Business
1 answer:
Vadim26 [7]3 years ago
8 0

Answer:

Tangibles (or tangibility)

Explanation:

When we say tangibles as a service quality dimension, we are referring to:

  • how the physical place or facility looks like (e.g. is the store clean, nicely decorated, etc.),
  • the perceived quality of the equipment (e.g. the gym uses high quality exercise machines),
  • are your employees fit for the job (e.g. the employees were kind and helpful, they could answer the customers' questions),
  • can your customers understand what you are trying to say to them or communicate to them? (e.g. does the store have signs that clearly differentiate the different clothing sectors?)

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g a. Provide the journal entry if the investor purchases the assets and assumes the liabilities of the investee company.
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Answer:

Debit : All assets bought at their Fair Value Amounts

Debit : Goodwill (<em>if Payment is greater than Net Assets acquired</em>)

Credit : All liabilities assumed at their Fair Value Amounts

Credit : Method of payment for example cash

Credit : Gain on acquisition (<em>if Net Assets acquired are greater than Payment</em>)

Explanation:

<em>Hi, your question is incomplete, i tried to look for the full question online but i could not find it.</em>

However, below is an explanation to solving the problem.

An acquisition of investee Assets and Liabilities is not a business combination transaction that requires preparation of consolidated financial statements.

A business combination is a transaction or event in which an ACQUIRER obtains CONTROL of one or more Businesses. So, if it is not a business, it is a mere ASSET ACQUISITION transaction.

Thus said, in our question investor purchases the assets and assumes the liabilities of the investee company, this is an Asset Acquisition transaction and not a Business Combination transaction.

The excess of consideration paid over the net assets acquired at fair value is called goodwill and must be recognized. If not the case the excess of net assets acquired over purchase price (gain on acquisition) must be recognized.

<u>Below are the accounting entries to record an Asset Acquisition transaction.</u>

Debit : All assets bought at their Fair Value Amounts

Debit : Goodwill (<em>if Payment is greater than Net Assets acquired</em>)

Credit : All liabilities assumed at their Fair Value Amounts

Credit : Method of payment for example cash

Credit : Gain on acquisition (<em>if Net Assets acquired are greater than Payment</em>)

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