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iogann1982 [59]
3 years ago
10

Under the equity method of accounting for investments, an investor recognizes its share of the earnings in the period in which t

he:_________.
a. investor sells the investment
b. investee declares a dividend
c. investee pays a dividend
d. earnings are reported by the investee in its financial statements
Business
1 answer:
Sphinxa [80]3 years ago
8 0

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.

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When Wal-Mart sells a package of diapers, the company captures data on that sale at its point-of-sale terminal and transmits tha
algol13

Answer:

C) vendor-managed inventory

Explanation:

Sometimes a company's vendor is granted access to the company's intranet system and specifically the inventory accounts. Together with the buyer they establish a minimum inventory level for their products and when that level is reached the vendor will automatically replenish the company's inventory. This is beneficial both for the company and the vendor. The company doesn't have to worry about keeping track of certain number of products and the vendor can smooth its sales operations.  

6 0
3 years ago
A member firm receives a large block order to buy 100,000 shares of XYZ stock, which is not actively traded. Which customer(s) o
Snowcat [4.5K]

Answer:

Other customers of the firm who place buy orders, if the firm has information barriers in place.

Explanation:

FINRA has strict rules against front running, and this is the process by which interested parties place orders for shares beforehand because they have insider information on how a share is going to perform in the future.

This rule is binding on any registered representative.

However if the firm has information barriers in place, any other customers that places a buy order will be assumed not to have insider knowledge of the share's expected performance. The FINRA rule is not binding on them.

3 0
3 years ago
What financial behaviors will typically lead to a low credit score?
levacccp [35]
The behavior that will typically lead to low credit score is <span>A. Maxed out credit cards
When people maxed out their credit cards, the credit card company will most likely to make additional charges before the balance is paid out. Maxed out credt cards would be interpreted as having uncontrollable consuming behavior and will result in low-credit card score.</span>
5 0
3 years ago
If the money multiplier is 3 and the fed wants to increase the money supply by $900,000, it could:.
Tanya [424]

Answer:

buy $300,000 worth of bonds

Explanation:

Hope this helps:)...if not then sorry for wasting your time and may God bless you:)

3 0
2 years ago
The market capitalization rate for Admiral Motors Company is 8%. Its expected ROE is 10% and its expected EPS is $5. The firm's
pashok25 [27]

Answer:

(A) 6%

(B) 20

Explanation:

The market capitalization rate for Admiral motors is 8%

= 8/100

= 0.08

The expected ROE is 10%

= 10/100

= 0.1

The expected EPS is $5

The Plowback ratio is 60%

= 60/100

= 0.6

(A) The growth rate can be calculated as follows

= Plowback ratio × ROE

= 0.6 × 0.1

= 0.06×100

= 6%

Hence the growth rate is 6%

(B) The P/E ratio can be calculated as follows

= 1-0.6/0.08-0.06

= 0.4/0.02

= 20

Hence the P/E ratio is 20

5 0
3 years ago
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