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Hunter-Best [27]
3 years ago
14

In a situation where the investor exercises significant influence over the investee, which of the following entries is not actua

lly posted to the books of the investor? 1) Debit to the Investment account, and a Credit to the Equity in Investee Income account. 2) Debit to Cash (for dividends received from the investee), and a Credit to Dividend Revenue. 3) Debit to Cash (for dividends received from the investee), and a Credit to the Investment account.
Business
1 answer:
Aneli [31]3 years ago
7 0

Answer:

2) Debit to Cash (for dividends received from the investee), and a Credit to Dividend Revenue.

Explanation:

Whenever the investment is made in shares of a company where the investor can exercise significant influence, then equity method is used.

Under equity method, it is that all incomes of investee company are incomes of investor company.

And any amount of income received as a distribution is deducted from the carrying value of investment, as reduces the cost of investment.

Thus, any dividend received is debited and investment account is credited.

Dividend is never treated as dividend revenue.

Thus, option 2 is not correct.

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What are the typical fees banks charge?
7 0
2 years ago
Read 2 more answers
Alpha Company is preparing its cash budget for the month of May. The company estimated credit sales for May at $200,000. Actual
disa [49]

Answer:

$157,000

Explanation:

The calculation of estimated cash receipts from accounts receivable collections in May is shown below:-

Collections from sales of may = $200,000 × 20%

= $40,000  

Collections from sales of April = $150,000 × 70%

= $105,000

Collections from sales of prior period = $12,000    

Estimated Collections in May month = Collections from sales of may + Collections from sales of April + Collections from sales of prior period

= $40,000 + $105,000 + $12,000

= $157,000

So, for computing the estimated collection in may month we simply applied the above formula.

4 0
3 years ago
When you are paying for clothes at the mall you are using money as a:
Nana76 [90]

Answer:

medium of exchange is your answer

mark me as the brainliest please

8 0
2 years ago
Louis owns an import business. After traveling to France on numerous occasions, he developed a taste for fine French wines. A ra
Tamiku [17]

Answer:

B. French wines will become more expensive in the United States.

Explanation:

Exchange rate is the rate at which one currency can be exchanged for another during international trade. The strength of a currency determines how much of the other countrie's goods it can purchase.

When the strength of a countrie's currency is high it will purchase more of the other countrie's goods. If however the currency is weak, it will take more to buy the other countrie's goods.

In this case if the dollar falls against the euro, it will take more dollars to buy French wine than before.

For example if a bottle of French wine was $500, after the fall the price may now be $800.

3 0
3 years ago
The rate of economic growth per capita in france from 1996 to 2000 was 1.9% per year, while in korea over the same period it was
bagirrra123 [75]

Answer:

36.83 years

16.85 years

$63,710.88

$ 71,490.43  

Explanation:

We can use the nper  formula in excel  to compute the doubling time for the capital real GDP of both countries

=nper(rate,pmt,-pv,fv)

FV is the future real GDP which $28,900*2=$57,800 for France while that of Korea is $25,400 ($12,700*2)

PV is the present real GDP

rate is the economic growth rate of 4.2% in Korea and 1.9% in France

France=nper(1.9%,0,-28900,57800)= 36.83  

Korea=nper(4.2%,0,-12700,25400)= 16.85  

In 2045 ,which is 42 years from now the real GDP are shown thus:

=fv(rate,nper,pmt,-pv)=fv(1.9%,42,0,-28900)=$63,710.88  

=fv(rate,nper,pmt,-pv)=fv(4.2%,42,0,-12700)=$ 71,490.43  

3 0
3 years ago
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