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konstantin123 [22]
3 years ago
14

Johnson Inc. purchases 21% of the voting stock of XYZ Company. This is sufficient to give Johnson significant influence over XYZ

. If Johnson elects to apply fair-value accounting to this investment, then any dividends XYZ pays to Johnson will be _________ treated as an addition to the Investment in XYZ account treated as a reduction to Goodwill treated as dividend income to Johnson treated as a reduction to the Investment in XYZ acc
Business
1 answer:
lutik1710 [3]3 years ago
4 0

Answer:

dividend income to Johnson treated as a reduction to the Investment in XYZ acc

Explanation:

It will debit cash by the amount to be received and credit his investment by the same value. The reasoning is that Johnson decides to distribute the dividends as it has significant influence over XYZ. Thus, it is not earnings. It is just moving cash from one place to another.

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Changes in net operating working capital should not be reflected in a capital budgeting cash flow analysis because capital budge
Ede4ka [16]

Answer:

The correct answer is False.

Explanation:

Net working capital, or "Working Capital" is simply the difference between current or current assets and current or short-term liabilities of a company.

Cash flow, on the other hand, is the net amount of cash and its equivalents that is transferred inside and outside the company and that may originate in operational, investment or financing activities.

Cash flow will have an operational origin, when there is a net decrease in working capital. In this situation there will be a net cash release that the company can use freely to honor debts, reinvest in operations, pay dividends, cover expenses or provide funds for future investments.

A negative cash flow, from the point of view of operations, implies that the company has increased its cash demands to finance sales on credit or inventory. That is, it has increased its investment in working capital. Situation that will require an analysis that allows a better way to manage capital.

6 0
3 years ago
David and Sandra Dess contracted with Sirva Relocation, LLC, to assist in selling their home. In their contract, the Desses agre
Inga [223]

Answer:

The answer is:

The Kincaids can sue David and Sandra Dess because they can be considered intended beneficiaries of the contract between them and Sirva.  

Explanation:

Intended beneficiaries are third parties in a contract that can sue the promisor for breach of contract.

In the contract, David and Sandra agreed to fully disclose all information about the property. Under the terms of the contract, they agreed that Sirva and "other prospective buyers" could rely on their disclosures.

8 0
4 years ago
When a real estate agent says the three most important factors when buying a property are “location, location, location,” the ag
Lorico [155]

<u>Answer:</u>

The correct answer for this is 'non price competition'.

<u>Explanation:</u>

When a real estate agent says the three most important factors when buying a property are “location, location, location,” the agent is referring to one of the forms of non price competition.

Non-price competition is a type of competition where two or more than two producers use factors like customer service, packaging or delivery rather than the price to increase the demand of the product or service.

Here, location is used as a non-price competition to increase the demand.

3 0
3 years ago
Read 2 more answers
Parsley, a world-famous chef, signs a contract to give lessons in French cooking to Curry. Parsley wants to transfer his duties
Margarita [4]

Answer:

C. <u>not valid because performance depends on Parsley's personal skills</u>

Explanation:

A valid contract refers to an agreement entered into by parties which legally binds both parties and is enforceable under the law.

For a contract to be termed as valid, it must be performed by the parties to it.

Performance clause in a valid contract refers to doing or acting in a way as is required by the terms of the contract.

In the given case, Parsley signed a contract to provide services i.e provide French cooking lessons to Curry. Later, Parsley wants to transfer his duties to Relish.

The transfer will not be valid since the performance i.e service to be provided by Parsley are of personal nature and the consideration is based upon that. No two individuals can provide exact services.

8 0
4 years ago
The U.S. experience of strong economic growth, full employment, and price stability in the late 1990s and early 2000s can be exp
vodomira [7]

Answer:

b. rightward shift of aggregate demand and a leftward shift of aggregate supply.

Explanation:

The U.S. experience of strong economic growth, full employment, and price stability in the late 1990s and early 2000s can be explained by a rightward shift of aggregate demand and a leftward shift of aggregate supply.

The rightward shift of aggregate demand is as a result of strong economic growth and price stability.

8 0
3 years ago
Read 2 more answers
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