Answer: The degree of influence that the investor has over the investee.
To report this investment within the company's financial statements, according to IFRS, they depend into two options:
- Stock control: An entity controls a business when it is exposed or has rights over earnings and has the ability to affect these results through its power in the business.
- Minority percentage: The acquirer recognizes in their books an uncontrolled participation and in this case, no decisive decisions can be made.
Answer:
Karen must recognize income of $20,000 in 2019 and $500 in 2020
Explanation:
Accrual basis of accounting states that income must be recognized in the period when it is earned and expenses must also be recognized when it is incurred.
Therefore, since the goods was sold in December 2019 and $500 interest was paid with the principal in April 2020, Karen must recognize income of $20,000 in 2019 and $500 in 2020.
Answer:
The total amount of account receivable it's $246.400
Explanation:
At the beginning the company had $270.000 in the account receivable and $38.600 of allowance for bad debt, when the company wrote off bad debt, it entry a credit in the Account Receivable and a Debit in hte Allowance for bad debt.
The new balance are $244.400 in the accounts receivables and $12.600 as credit in the allowance for bad debt, with the new sales the company generate an extra account receivable of $15.000, so the net value of Accounts Receivable it's $246.400.
Answer:
option (b) $4,200 gain
Explanation:
Data provided in the question:
Par value of outstanding bonds = $119,000
Carrying value of the bonds = $108,700
Price at which bond is called = $104,500
Now,
Gain on the retirement is calculated using the relation as;
Gain on retirement
= Carrying value of Bonds - Price at which bond is called
= $108,700 - $104,500
= $4,200
Since, the result is positive, therefore a gain will be recognized
Hence, correct answer is option (b) $4,200 gain
<span>Yes
because the AICPA standard for due care does not require CPAs to be infallible.
Since the definition of infallible means incapable of making a mistake. Which
this is not necessarily true. CPAs are capable of making mistakes and as long
as they performed their work with professional due care then they cannot be
held accountable for mistakes that may have happened. </span>
