This is an example of a derivative lawsuit, which is a suit brought by a shareholder on behalf of a company they invest in for wrongdoing by a 3rd party. Usually the shareholder can only do this when the company has cause for their own suit but has declined to take action for one reason or another.
1. Debt Collection
2. A nominal ledger
3. Investment
4. A trial balance
5. All of the above
6. Income Statement
7. Cash flow Statement
8. Snapshot
9. To show managers and investors whether the company made or lost money during the period being reported.
Just took the Test and got a 100!
Answer:
Minimum transfer price = $86
Explanation:
Pump Division is operating at full capacity, hence it has no excess capacity
This implies that it can not produce enough to meet both the internal demand (from the Pool Division ) and external buyers.
Hence, it implies that Pump Division cannot accommodate the demands of the Pump Division at a price lower than the external price of $86. Any price lower than $86 would result into a loss in contribution.
To maximize and optimize the group profit, the minimum transfer price should be set as follows:
Minimum transfer price = External selling price at which Pump Division sells to outside customers
Minimum transfer price = $86
On the balance sheet after adjusting entries are made, the amount shown for the allowance for doubtful accounts is equal to the total estimated uncollectible accounts as the end of the year. A doubtful account is a reduction of the total amount of acounts receivable appearing on a company's balance sheet and are listed as a deduction immediately below accounts receivable line item.
Answer:
B) $3,000
Explanation:
Since this is defined as a derivative operation, its result must be reported either as a gain or loss as part of normal income. Imp entered a contract to buy 100,000 euros at $0.90. If the exchange rate remained at $0.90 in 90 days, no gain or loss should be recognized.
But the currency exchange increased to $0.93 per euro, so the contract now results in a $0.03 gain per euro (= $0.93 - $0.90), so a gain of $0.03 x 100,000 = $3,000 must be reported.
