Answer: D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.
What is a basic premise of the acquisition method regarding accounting for a non controlling interest?
A) Consolidated financial statements should not report a non controlling interest balance because these outside owners do not hold stock in the parent company.
B) Consolidated financial statements should be primarily for the benefit of the parent company's stockholders.
C) Consolidated financial statements should be produced only if both the parent and the subsidiary are in the same basic industry.
D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.
D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.
<span>The bond is a written promise to pay the bond's par value and interest at a stated contract rate. </span><span>Bonds that have interest coupons attached to their certificates, which the bondholders present to a bank or broker for collection, are called coupon bonds.
</span><span>Bondholders detach coupons when they mature and present them to a bank or broker for collection.
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Answer:
D
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Profit is maximised where marginal cost equals marginal revenue.
1. Unearned Revenue
2. Accrued Expense
