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pentagon [3]
3 years ago
6

Multiple-Choice Questions on Consolidation Overview [AICPA Adapted]

Business
1 answer:
boyakko [2]3 years ago
4 0

Answer: 1. D. Economic entity

2. C. Circumstances prevent the exercise of control.

3. B. Consolidation used for both Sell and Vane.

4. B. In form, the companies are separate; in substance, they are one entity

Explanation:

1. When a parent–subsidiary relationship exists, it can be infered that consolidated financial statements will be prepared in recognition of the accounting concept of economic entity.

2. Consolidated financial statements are prepared when one company has a controlling interest in another unless the circumstances prevent the exercise of control.

3. Based on the information given, in Penn’s consolidated financial statements, it should be noted that Sell and Vane should be consolidated. Therefore, the correct option is B.

4. The best theoretical justification for consolidated financial statements is that in form, the companies are separate while in substance, they are regarded as one entity.

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Complete the following statement. The purpose of the closing process is to reset _________ (temporary/permanent) account balance
frez [133]

Answer:

The correct answer is temporary/earnings

Explanation:

The objective of the accounting closing is to evaluate the benefits or losses of a business activity. In other words, if the final result is positive, there is an increase in business equity, and if the final result is negative, there is a decrease in company equity.

Finally, in the accounting closing, a series of steps are carried out: the accounting regularization, the determination of the result, the closing of accounts and the presentation of annual accounts.

In conclusion, in the accounting cycle a period of time is contemplated and a set of operations and procedures are carried out in order to reflect the financial status of a company.

4 0
3 years ago
Read 2 more answers
there were 200 tickets sold for a college basketball game. Tickets were $4.50 for students and $9 for adults. The total amount c
Virty [35]

Answer:

70 tickets were sold to student and 130 tickets were sold to adults

Explanation:

Let the number of tickets purchased by students be "X" and the number of tickets purchased by adults  be "Y"

Given

Total number of tickets sold = 200

Total amount collected by selling 200 tickets = 1485 dollar

Cost of one ticket of student = 4.5 dollar

Cost of one ticket of adult = 9 dollar

Two equation are as follows

X + Y = 200\\ ------Eq (1)

4.5 X + 9 Y =1485 -------- Eq (2)

Multiplying eq (1) by 9 and subtracting from equation 2 we get

4.5 X - 9 X + 9Y -9Y = 1485 - (200* 9)\\-4.5 X = -315\\X = 70

Substituting the value of X in equation 1 we get

70 + Y = 200\\Y = 200 -70 \\Y = 130

Therefore, 70 tickets were sold to student and 130 tickets were sold to adults

8 0
3 years ago
Is buying a movie ticket considered a(n)
Snowcat [4.5K]
I would say C. Hope this helps!
6 0
3 years ago
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The Law Firm prepays for advertising in the local newspaper. On January​ 1, the law firm paid for months of advertising. How muc
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Answer and Explanation:

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In this way, it should be determined

And, the same should be relevant

7 0
3 years ago
Lucky started a new business last year. Since it was the first year of operation, the business purchased $10,000 in machinery an
gulaghasi [49]

Answer:

True

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The reason is that the Internation Financial Reporting Framework says that though there are choices the company must opt to the depreciation method that brings fairness to the financial statement, which means that the method used calculates the depreciation for the year that actually represents the decrease in the value of the assets in market value. So if the current method brings the fairness to the Financial statements, Lucky can use them and if those don't bring fairness to the financial statements then its better to use alternative which will bring the fairness to financial statements.

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3 years ago
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