I would say no,because there are other types of agreements between people.not just paper ones
Answer: Earnings are reported by the investee in its financial statements
Explanation:
Equity method is when investments are being treated in associate companies and it is usually applied in cases whereby an investor entity holds about twenty to fifty percent of the associate company's voting stock. Due to this reason, it has a strong say in the associate company's management.
Under the equity method of accounting for investments, an investor recognizes its share of the earning in the period in which the earnings are reported by the investee in its financial statements.
Answer:
Net cash provided by operating activities $3,221,400
Explanation:
The computation of the net cash provided by operating activities using the indirect method is given below
cash provided by operating activities
Net income $2,950,000
Add: depreciation $188,800
Add: decrease in account receivable $413,000
Less: decrease in account payable -$330,400
Net cash provided by operating activities $3,221,400
Answer:
Nil or $0
Explanation:
The entire amount of $1,720,000 should be reported as long term liability, as the both the criteria of intent and ability are met. The second note (long term note) was issued to repay the first one. It is presumed the firm did not have enough current assets to pay the first note and that the second note is made before the issue of the balance sheet. So, the amount to be reported as current liability is "nil".
Answer:
a. Selection decisions
Explanation:
Capital Budgeting decisions is basically divided in two broad categories that are:
Screening Decisions: This is the decision made by any company while making a capital budgeting decision that the company will accept the project based on companies specific criteria.
It might be based on cash flow, or required return etc:
Preference Decisions: When the company evaluates two or more projects then it makes a decision as to which project shall be favorable. Then the priority list is created.
There is no selecting decisions in the capital budgeting decisions.
