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ivolga24 [154]
3 years ago
15

Club Co. appropriately uses the equity method to account for its investment in ChipCorp. As of the end of 2013, Chip's common st

ock had suffered a significant declinein fair value, which is expected to be recovered over the next several months. How should Club account for the decline in value? A. Club should switch to the fair-value method.B.No accounting because the decline in fair value is temporary.C. Club should decrease the balance in the investment account to the current value and recognize a loss on the income statement.D. Club should not record its share of Chip's 2013 earnings until the decline in the fair value of the stock has been recovered.E. Club should decrease the balance in the investment account to the current value and recognize an unrealized loss on the balance sheet.
Business
1 answer:
sweet-ann [11.9K]3 years ago
3 0

Answer:

C. Club should decrease the balance in the investment account to the current value and recognize a loss on the income statement.

Explanation:

Club SHOULD account for the decline in value by decreasing the balance in the investment account because it is stated in IAS 28 that when the 'carrying amount' which is the book value of an investment in an another company's shares <u>exceeds</u> the amount at which that investment can be disposed which is its 'recoverable amount', an impairment loss is recognized. The loss should be posted directly to the investment account.

Hence the investment account will be credited and the corresponding debit will go to the income statement.

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what was a benefit of square inc. that differentiated it from the other pos systems that were available at the time it first lau
Mice21 [21]

Small businesses were able to afford to accept credit and debit card transactions because a flat fee was charged per transaction.

Smaller companies and individual vendors were able to accept credit and debit cards for payment since they didn't need to invest in expensive servers or infrastructure. Servers at restaurants were able to process customer payments right at the table, increasing the speed at which they could turn over tables.

Smaller groups and individual carriers had been capable of taking delivery of credit and debit cards for the price considering the fact that they did not need to spend money on high-priced servers or infrastructure. This led organizations to attention to how their personnel was prompted and managed and led to the development of a principle Y management fashion that specializes in the force for character self-achievement. McGregor's perspective places the obligation for performance on managers in addition to subordinates.

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3 0
1 year ago
Spending, saving, and investing to have the kind of life you want and financial security can be achieved by
melomori [17]

Answer:

Personal financial planning

Explanation:

If you plan out how you will spend, save, and invest your money, you can get to many places in live.

5 0
3 years ago
Read 2 more answers
Net present value: Select one: is the best method of analyzing mutually exclusive projects. is less useful than the internal rat
Leto [7]

Answer:

Is the best method of analyzing mutually exclusive projects.

Explanation:

Net present value is equal to the present value of all the future cash flows of a project, less the initial outlay of project.

Net present value analysis simply concluded about a project to be worth doing when it finds the present value of future cash flows greater than the initial investment and vice versa.

We just have to see which is higher, the present value of future cash flows or the initial investment.

It is assumed that an investment with a positive NPV will be profitable, and an investment with a negative NPV will result in a net loss.

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3 years ago
Which of the following statements is true regarding the effect of group cohesiveness and performance norms on group productivity
ikadub [295]

At the point when both cohesiveness and performance norms are high, productivity will be high.  

<u>Explanation</u>:

It is genuine with respect to the impact of gathering cohesiveness and execution standards on bunch profitability.

Gathering cohesiveness is one of the trademark highlights of the gatherings, which is significant from the behaviouristic perspective. Cohesiveness is how much the gathering individuals are pulled in to one another and are persuaded to remain in the gatherings. Cohesiveness characterizes the level of closeness that the individuals feel with the gatherings. It is comprehended as the degree of preferring every part has towards others in the gathering and how far everybody needs to stay as an individual from the gathering.  

"Cohesiveness alludes to the degree of solidarity 'in the gathering and is reflected in individuals' adjustment to the standards of the gathering, the sentiment of fascination for one another and needing to be co-individuals from the gathering." Attraction, cohesiveness, and similarity are altogether interwoven. The more the individuals feel pulled in to the gathering, the more noteworthy will be the gathering cohesiveness. The more noteworthy the cohesiveness, the more prominent the impact of the gathering individuals to convince each other to adjust to the gathering standards. The more prominent the congruity, the more noteworthy the character of the individuals to the gathering and the more noteworthy the gathering cohesiveness.

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3 years ago
What is khat's theory
nika2105 [10]

Kant's theory is a universal ethical principle and they are typically organized around the notion of a categorical imperative.

<h3>What is Kant's theory?</h3>

Kant's theory of ethics can be defined as a universal ethical principle which states that an individual should respect the humanity in others always, and they should always act in accordance with rules that holds for everyone only.

<h3>What are ethics?</h3>

Ethics can be defined as a set of both written and unwritten principles, values or rules of moral conduct that guides and governs human behaviors. It's a reflection that is typically based on identifying what is good or bad, right or wrong and just or unjust with respect to human behaviors.

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Complete Question?

What is Kant's theory?

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2 years ago
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