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Delvig [45]
3 years ago
13

When an intercompany inventory profit resulting from a sale by a less than 100% owned subsidiary to its parent is eliminated, th

e full amount (100%) of the decrease in profit is deducted from consolidated net income available to the parent shareholders.
Business
1 answer:
joja [24]3 years ago
3 0

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.

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Several factors can contribute to long-term organizational success. one is the establishment of a core ideology that collins and
andrew11 [14]

Original Source Material

Student Version

Merck, in fact, epitomizes the ideological nature--the pragmatic idealism--of highly visionary companies. Our research showed that a fundamental element in the "ticking clock" of a visionary company is a core ideology--core values and a sense of purpose beyond just making money--that guides and inspires people throughout the organization and remains relatively fixed for long periods of time.

References:

Collins, J. C., & Porras, J. I. (2002). Built to last: Successful habits of visionary companies. New York, NY: Harper Paperbacks.

Several factors can contribute to long-term organizational success. One is the establishment of a core ideology that Collins and Porras (2002) describe as "core values and sense of purpose beyond just making money" (p. 48). Also, the importance of a visionary leader that guides and inspires people throughout the organization and remains relatively fixed for long periods of time is hard to over emphasize.

References:

Collins, J. C., & Porras, J. I. (2002). Built to last: Successful habits of visionary companies. New York, NY: Harper Paperbacks.

Which of the following is true for the Student Version above?

Word-for-Word plagiarism

Paraphrasing plagiarism

This is not plagiarism

This is not plagiarism.

Answer: Option 3.

<u>Explanation:</u>

Plagiarism in very simple words is the copying of the content of the document that has been written by some one else in to your own document. During this copying the due acknowledgement is also not given to the document from which it has been taken.

The document that has been talked about in the question above is not an example of plagiarism. The proof for this is the due acknowledgement given to the references from whose document the content has been taken into the document.

8 0
3 years ago
If the price elasticity for frappuccinos is 0.6, by how much would unit sales drop?
shusha [124]

Frappuccinos drop in unit sales = 3.87%

Price elasticity for frappuccino = % change in quantity demanded / % change in price

% change in quantity demanded = Price elasticity for frappuccino * % change in price

= 0.6 * 6.45%

= 3.87%.

Frappuccinos are almost always loaded with fat, sugar, and calories, except for the Coffee Light Frappuccino, featured as one of the healthiest Starbucks drinks on this list. All four of Starbucks' unhealthiest drinks are frappuccinos.

Frappuccino is a Starbucks trademarked iced coffee drink. This drink is a coffee or cream base mixed with ice and other ingredients such as flavors, syrups, spices, and whipped cream.

Learn more about Frappuccino at

brainly.com/question/16226185

#SPJ4

8 0
11 months ago
Assume a firm has a beta of 1.2. All else held constant, the cost of equity for this firm will increase if the: beta decreases.
eduard

Answer:

Risk-free rate decreases

Explanation:

The CAPM formula for calculating cost of equity requires one to know the value of 3 pieces of information only:

1. the market rate of return,

2. the beta value

3. the risk-free rate.

Ra = Rrf + [Ba∗(Rm−Rrf)]

where:

Ra=Cost of Equity

Rrf = Risk-Free Rate

Ba = Beta

Rm=Market Rate of Return

​From the formula

Ra = Rrf + [1.2∗(Rm−Rrf)]

Ra = Rrf + 1.2Rm - 1.2Rrf

From Ra = 1.2Rm -0.2Rrf

From the expression above, it can be seen that the lower the value of Rrf (Risk-Free rate), the higher the value of Ra.

4 0
3 years ago
Last year a country’s real GDP grew by 4%, it’s inflation rate was 2.5%, and it’s government budget deficit was about $250 billi
Arturiano [62]

Answer:

d. 3.85 trillion

Explanation:

Step 1: Given data

GDP = GDP grew by = 4% = 0.04

R = inflation rate was = 2.5% = 0.025

D = government budget deficit was = $250 billion

Step 2: Formula

X = debt at the start of last year

X = D / (GDP + R)

Step 3: Computation

X = 250 billion / (0.04 + 0.025)

X = 250,000,000,000 / 0.065

X = 3,846,153,846,153.85

Step 4: Convert to trillion

X = 3,846,153,846,153.85 / 1,000,000,000,000

X = 3.85 trillion

The correct option is d. 3.85 trillion

Hope this helps!

5 0
3 years ago
Is the customer always right?" a. Company policy and rules always should be followed regardless of what the customer may need or
alisha [4.7K]

Answer: C.

Explanations: Many companies go by that standard although they don't necessarily mean it. They are very much aware of how much a customer is important to the company.  They should be aware of all the staff and how they are treating the customers, the quality of a product and generally give their best to please someone when they come inside their store.

However there should be certain precautionary measures taken if they encounter with a customer that, beside all the kindness you were offering, is rude, frantic, starts damaging the goods, ambience etc.

8 0
3 years ago
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