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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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Engler Company purchases a new delivery truck for $55,000. In addition, the sales taxes are $4,000. Engler also paints on the lo
uysha [10]

Answer:

$61,390

Explanation:

Calculation to determine What does Engler record as the cost of the new truck

Using this formula

Cost of new truck=Purchase price+Sales tax, painting +Logo on the side of the truck +Safety testing +Tune up and oil change

Let plug in the formula

Cost of new truck=$55,000 + $4,000 + $1,600 + $290 +$500

Cost of new truck= $61,390

Therefore what Engler will record as the cost of the new truck is $61,390

6 0
3 years ago
If the cost of goods sold is more than the cost of goods manufactured, then
ivann1987 [24]

Answer:

C. Finished Goods Inventory has decreased.

Explanation:

Cost of goods manufactured (COGM) increases when finished goods inventory is <em>produced</em>, while cost of goods sold (COGS) increases when finished goods inventory is <em>sold</em>. If COGS has been increasing faster than COGM has been increasing, the company has been selling more goods than it has been producing. Therefore, it must have sold goods from its surplus of finished goods inventory. Thus, finished goods inventory has decreased.

8 0
3 years ago
Lincoln electric believes in a highly motivated and highly skilled workforce. they choose to pay their employees based on produc
mafiozo [28]
They use a <span>Straight Piecework Plan </span>as an incentive to their employees.
The Straight Piece-Work System is the simplest  incentive approach in which the rate in keeping with unit of output is fixed, and the income of the employee are computed with the aid of multiplying his total output by rate per unit. We can also define this as the system or plan in which the employers or workers are paid according to the number of units produced during a defined time period at fixed rate.
6 0
3 years ago
Why do businesses think that money in their bank accounts is part of their cash total?
Brums [2.3K]

Answer:

Because liquid assets are a part of the entire wealth/value of a company.

Explanation:

If Jeff Bezos has 60 billion of dollars worth of assets like buildings and physical investments, that isnt his total wealth, you have to count in his liquid cash as well.

7 0
3 years ago
Some critics argue that socializing online is unhealthy because:
Luda [366]
C.
The main criticism is that the internet takes away from real life interaction.
8 0
3 years ago
Read 2 more answers
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