Answer:
TRUE
Explanation:
It is true that when an intercompany inventory profit resulting from a sale by a less than 100% owned subsidiary to its parent is eliminated, the full amount (100%) of the decrease in profit is deducted from consolidated net income available to the parent shareholders.
Unrealized profits are the profit element not earned because they were not sold to third parties, it was basically a transfer between one company in a group (for example subsidiary) and another company in the same group (for example to the parent company).
At the year-end, if the goods are still in inventory, any profit thereon cannot be recognized but eliminated. Therefore for consolidation purposes, this unrealized profit element is taken out of inventory value in order to reduce the inventory value back down to the lower of cost or net realizable value.
This is done by crediting the inventory amount and debiting consolidated retained earnings.
Answer:
creating goods and services.
Explanation:
Economics seeks to get answers to how societies utilize scarce resources to meet the unlimited needs of members. The three basic questions that economics addresses are
- What to produce?
- How to produce?
- For whom to produce?
Creating goods and services and services is answering on what to produce? With the limited resources, authorities must decide what goods and services to produce. Decisions have to be made on what needs to meet immediately. For example, the government may decide to build new schools rather than contract a new road
If Power industries has acquired a patent for $16,000. its useful life is expected to be four years. The yearly journal entry to recognize periodic amortization is: Debit Amortization Expense - Patents $4,000; Credit Patents $4,000.
<h3>Journal entry </h3>
If the company has acquired a patent for the amount of $16,000 in which the useful life is expected to be four years. The appropriate journal entry to recognize periodic amortization is:
Power industries journal entry
Debit Amortization Expense - Patents $4,000
Credit Patents $4,000
($16,000/4 years)
(To record periodic amortization recognized)
Therefore the yearly journal entry to recognize periodic amortization is: Debit Amortization Expense - Patents $4,000; Credit Patents $4,000.
Learn more about Journal entry here:brainly.com/question/14279491
#SPJ1
Answer:
False
Explanation:
Capital budgeting is needed in any project work as it entails the process and procedures taken in evaluation and selection of long-term investments that are consistent with the firm's goal of maximizing owner's wealth.
Normally, before a company invest or undergo any project, background work is done to know if the project will yet profit or no, feasibility study is carried out and things are put in place. If it is favourable for the firm and profit is high, firms may choose to invest after weighing the pros and cons (advantage and disadvantage) of the project before investment. So return of investment initial investment is not really considered when taking up a project as all project is done at their own risk.
Answer:
staffing decision making problems
Explanation:
In simple words, corporate finance relates to the branch of finance that studies how and when an organisation and individuals should incest their money in the market.
In this subject matter. the analyst takes into consideration various market factors such as interest rates, GDP etc. and by applying various tools and methods make a decision.
It particularly deals with investment decisions and asset management problems and not staffing decisions.
