Answer:
B. Best would be considered the parent entity.
Explanation:
When a company owns another companies stock of 90% or more it would be considered as parent entity. The parent entity can control the the subsidiary. The financial statements will be consolidated into parents companies accounts.
Answer: Option C
Explanation: Environmental circumstances refers to the threats and opportunities that arise from political and economical unstability. These are highly fluctuating factors and can affect the business highly.
In the given case, the business of Ben and Chris slowed down due to the economic breakdown in the country. These factors are inescapable and affect all the businesses in the economy.
Thus, from the above we can conclude that the correct option is C.
Answer:
D. $77,600
Explanation:
The $77,600 made to purchase equipment would be reported as a cash outflow in the investing activities section. This is because asset purchased such as equipment is an investment while the cash used to purchase the asset is regarded as cash outflow.
Dividends are recorded in the financing section, while cash paid for interest and paid to suppliers would be recorded in the operating activities.