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Olenka [21]
2 years ago
13

For each of the following situations, select the best answer that applies to consolidating financial information subsequent to t

he acquisition date:
(A) Initial value method.
(B) Partial equity method.
(C) Equity method.
(D) Initial value method and partial equity method but not equity method.
(E) Partial equity method and equity method but not initial value method.
(F) Initial value method, partial equity method, and equity method.
_____1. Method(s) available to the parent for internal record-keeping.
_____2. Easiest internal record-keeping method to apply.
_____3. Income of the subsidiary is recorded by the parent when earned.
_____4. Designed to create a parallel between the parent's investment accounts and changes in the underlying equity of the acquired company.
_____5. For years subsequent to acquisition, requires the *C entry.
_____6. Uses the cash basis for income recognition.
_____7. Investment account remains at initially recorded amount.
_____8. Dividends received by the parent from the subsidiary reduce the parent's investment account.
_____9. Often referred to in accounting as a single-line consolidation.
_____10. Increases the investment account for subsidiary earnings, but does not decrease the subsidiary account for equity adjustments such as amortizations.
Business
1 answer:
Whitepunk [10]2 years ago
8 0

Answer:

1. Method(s) available to the parent for internal record-keeping - (A) Initial value method

2. Easiest internal record-keeping method to apply.  - (F) Initial value method, partial equity method, and equity method.

3. Income of the subsidiary is recorded by the parent when earned.  - (E) Partial equity method and equity method but not initial value method.

4. Designed to create a parallel between the parent's investment accounts and changes in the underlying equity of the acquired company.  - (C) Equity method.

5. For years subsequent to acquisition, requires the *C entry.  - (B) Partial equity method.

6. Uses the cash basis for income recognition.  - (D) Initial value method and partial equity method but not equity method

7. Investment account remains at initially recorded amount.  - (C) Equity method.

8. Dividends received by the parent from the subsidiary reduce the parent's investment account.  - (E) Partial equity method and equity method but not initial value method.

9. Often referred to in accounting as a single-line consolidation. - (A) Initial value method

10. Increases the investment account for subsidiary earnings, but does not decrease the subsidiary account for equity adjustments such as amortizations - (A) Initial value method

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Determine the missing amounts.Unit SellingPriceUnit VariableCostsUnit ContributionMarginContribution MarginRatio1. $650 $390 $en
tatiyna

Answer:

I tried to order the information and prepared the following table:

                                                  Product A           Product B        Product C

Unit Selling Price =                        $650                $200              <u>e)$2,300</u>

Unit Variable Costs =                    $390               <u>c)$108</u>              <u>f)$1,495</u>

Unit Contribution Margin =          <u>a)$260</u>                  $92                $805

Contribution Margin Ratio =         <u>b)40%</u>               d)<u>46%</u>                 35%

contribution margin ratio = (revenue - cogs) / revenue     or      

contribution margin ratio = contribution margin / revenue

8 0
2 years ago
Beck Inc. and Bryant Inc. have the following operating data:__________.
DiKsa [7]

Answer:

a. Beck Inc. = 5.00  and Bryant Inc. = 2.50

b. Beck Inc. =  $100,000 and 100%  : Bryant Inc. =  $150,000 and 50 %

c. True.

Explanation:

Degree of Operating Leverage shows,  the times Earnings Before Interest and Tax (EBIT) would change as a result of a change in Sales contribution.

Degree of Operating Leverage = Contribution ÷ EBIT

Thus,

Beck Inc = $500,000 ÷ $100,000

              = 5.00

Bryant Inc. = $750,000 ÷ $300,000

                 = 2.50

<em>If Sales increased by 20% the effects on Incomes would be :</em>

Beck Inc = 20% × 5.00

              = 100%

              = $100,000 × 100%

              = $100,000

Bryant Inc.=  20% × 2.50

              =  50 %

              =  $300,000 × 50 %

              =  $150,000

7 0
3 years ago
A lender is willing to provide a loan equal to 80% of a property worth $360,000. If such a loan carries an interest rate of 7.5%
lukranit [14]

Answer:

B) $11,750

Explanation:

annual mortgage payment = net operating income - (outstanding loan balance x loan payment factor)

outstanding loan balance = property value x loan percentage

annual mortgage payment = $40,000 - [($360,000 x 80%) x 0.09809] = $40,000 - ($288,000 x 0.09809) = $40,000 - $28,250 = $11,750

5 0
3 years ago
While there is a wide variety of projects across organizations, the degree of formality used in selecting them is largely unifor
Romashka-Z-Leto [24]
The answer would be false because uniform would mean there is a standard and different organizations have different priorities 
6 0
3 years ago
A professor of statistics claimed that the average amount of money a typical college
Lilit [14]

Answer:

We fail to reject the Null hypotheses that the average amount of money a typical college student spends per day is less than $70.

Explanation:

A professor of statistics claimed that the average amount of money a typical college student spends per day during social distancing at home is over $70.

Based upon previous research, the population standard deviation is estimated to be $17.32.

The professor surveys 35 students and finds that the mean spending is $67.57.

Is there evidence that the average amount spent by students is less than $70?

For the given problem the Null hypotheses is that the average amount of money a typical college student spends per day is less than $70.

H_0= \mu

For the given problem the Alternate hypotheses is that the average amount of money a typical college student spends per day is over $70.

H_1= \mu >70

The test statistic is given by

z = \frac{\bar{X}-\mu}{\frac{\sigma}{\sqrt{n} } }

Where X_bar is the sample mean spending that is $67.57, μ is the average population spending that is $70, σ is the standard deviation that is 17.32 and n is the sample size that is 35.

z = \frac{67.57-70}{\frac{17.32}{\sqrt{35} } }\\\\z = \frac{-2.43}{ 2.927}\\\\z = -0.83

The p-value corresponding to the z-score of -0.83 at significance level 0.10 is found to be

p-value = 0.2036

Since 0.2036 > 0.10

We fail to reject the Null hypotheses that the average amount of money a typical college student spends per day is less than $70.

6 0
3 years ago
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