C. Whether the deductible is higher compared to other policies. Sorry if I am wrong but this is my best answer.
Answer:
$10,140,000
Explanation:
To make consolidated statements company needs to consolidate the financial data of its own and its subsidiary.
Revenue can be consolidated of parent and subsidiary as follow:
First
Add revenue of both companies
Total Sales = Patti Company sales + Shannon Inc. sales
Total Sales = $10,000,000 + $200,000 = $10,200,000
Now deduct the sale made to each other because sales mad within the group is not recorded for consolidation purposes and it is not a sale for a group it is an internal group transfer.
Consolidated Sales = Total sales - Internal Sales
Consolidated Sales = $10,200,000 - $60,000 = $10,140,000
Answer:
c. liquidity ratio
Explanation:
Liquidity means having cash or access to cash readily available to meet obligations to make payments.
For the purpose of ratio analysis, liquidity is measured on the assumption that the only sources of
cash available are:
Cash in hand or in the bank, plus
Current assets that will soon be converted into cash during the normal cycle of trade.
It is also assumed that the only immediate payment obligations faced by the entity are its current liabilities.
There are two ratios for measuring liquidity:
Current ratio
Quick ratio, also called the acid test ratio.
Based on the above discussion, the answer is c. liquidity ratio
Answer:
The correct answer is the third option: a special journal entry that eases the burden of accounting for transactions in the next period.
Explanation:
To begin with, a <em>reversing entry </em>is the name given to a special journal entry in the accounting areas that focus on the action of reversing selected entries made in the inmediately preceding period in order to correct common human mistakes. Therefore that this type of entry has the intention of easing the burden of accounting for transactions in the next period by just noticing that is being used in the journal.
The answer to this question is a modified endowment contract. A modified endowment contract or MEC is a type of life insurance policy where in the policy/ insurance is being funded with more money or the insurance premium payment exceeds the amount allowed under the federal law. The modified endowment contracts are taxable.
