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Svet_ta [14]
3 years ago
10

When a parent uses the equity method throughout the year to account for its 80% investment in an acquired subsidiary, which of t

he following statements is false at the date immediately preceding the date on which adjustments are made on the consolidated worksheet?
a. Parent company net income equals controlling interest in consolidated net income.b. Parent company retained earnings equals consolidated retained earnings.c. Parent company total assets equals consolidated total assets.d. Parent company dividends equals consolidated dividends.e. Goodwill will not be recorded on the parent's books.
Business
1 answer:
ValentinkaMS [17]3 years ago
4 0

Answer:

c. Parent company total assets equals consolidated total assets

Explanation:

  • The equity method is a process of treating investment in an associated companies and is usually applied where the investor holds about 50% of the companies stocks and this has a significant influence in the later management.
  • They are recorded in the balance sheets and are associated with the companies net incomes and investments. If 80% of the investment is accounted for the subsidiary then the parent company total assess will not be equal o the total assets as it involves taxes.
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michael was on the abc accounting firm's audit team for the rasmussen corporation audit. rasmussen's officers were so impressed
nirvana33 [79]

In order to preserve independence, Michael must "Remove himself from the engagement as he considers the offer." (Option B). It is to be noted that this is an internal control problem.

<h3>What is Independence in this case?</h3>

The absence of situations that jeopardize the internal audit activity's capacity to carry out internal audit tasks objectively is called Independence.

Practically, independence is achieved by ensuring that the internal audit activity has no management control for any of the organization's non-audit functions that are subject to internal audit assessments, and by distancing the internal audit activity's management from the functional oversight of the organization's senior management.

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Full Question:

Michael was on the ABC Accounting Firm's audit team for the Rasmussen Corporation audit. Rasmussen's officers were so impressed with Michael that they offered him a job as Director of Internal Audit at Rasmussen. What should Michael do in order to preserve independence?

A) Tell his superiors as soon as he has decided whether or not to accept the offer.

B) Remove himself from the engagement as he considers the offer.

C) Pray for divine guidance.

D) If he decides to reject the offer, remove himself permanently from the engagement.

6 0
2 years ago
Terrance is very skilled in biological research and the scientific principles guiding his work. He is also punctual, well-organi
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Answer:

<em>Transferable skills</em>

Explanation:

Transferable skills <em>include all abilities that you may have, that are helpful to companies throughout different employment and sectors. </em>

They may involve abilities that companies pursue in powerful applicants such as versatility, organisation, sportsmanship or other characteristics.

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5 0
3 years ago
Douglas Company issued 5-year bonds on January 1. The 12% bonds have a face value of $35,000,000 and pay interest every January
Blababa [14]

Answer:

Given:

12% bonds have a face value of $35,000,000

Bonds sold for $37,702,483 based on the market interest rate of 10%.

∴

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= $1,885,124

⇒ The interest expense on July 1 is $1,885,124

4 0
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