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3 years ago

When the preparation of consolidated financial statements in a parent-subsidiary relationship occurs, it is an example of the?

Business

1 answer:

Vsevolod [243]3 years ago

4 0

Answer:

It is an example of subsidiary companies, and occurs when a company is directly or indirectly controlled by another and for that control to exist, it is the property of more than 50% of the shares.

Explanation:

A company is considered the parent of another when it exercises financial, economic and administrative control directly or indirectly, through one or more subsidiaries of its own, or by companies that have a dependency link to the parent company or its subsidiaries, therefore, the subordinate is that company that lacks autonomy simply because it is dominated by a parent company.

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A corporation is a type of partnership that?

NeTakaya

That has share holders and a board of directors.

3 0

3 years ago

Flexible Budgeting At the beginning of the period, the Fabricating Department budgeted direct labor of $9,280 and equipment depr

andriy [413]

Answer:

$11,000

Explanation:

Fabricating Department budgeted direct labor = $9,280

Depreciation remains constant at any level of production.

Budgeted labor rate = Budgeted direct labor ÷ Hours of production

= $9,280 ÷ 640

= $14.5 per hour

Direct labor cost = completed hours of production × Budgeted labor rate

= 600 × $14.5

= $8,700

Budget for the Fabricating Department at 600 hours of production:

Budgeted cost = Direct labor cost + Equipment depreciation

= $8,700 + $2,300

= $11,000

4 0

3 years ago

Atom Endeavour Co. issued $21 million face amount of 4.0% bonds when market interest rates were 4.46% for bonds of similar risk

Eduardwww [97]

Answer:

A. $840,000

B. Discount

C. Annual interest expense on these bonds will be more than the amount of interest paid each year.

Explanation:

Data

Bonds issued = $21,000,000

Coupin rate = 4.0%

Market Interest rate = 4.46%

Requirement A: Annual interest amount

Interest amount = Bonds issued x coupon rate

Interest amount = $21,000,000 x 4.0%

Interest amount = $840,000

Requirement B: Whether it is Premium or Discount?

Bonds that Atom Endeavour Co. issued are discount as you can clearly see in the data that the market rate is higher than the coupon rate. Investors who will buy these bonds surely expect a capital gain.

Requirement C:

The discount on the issue of bonds is amortized to interest expense over the life of the bond, therefore the interest expense on these bonds will be more than the amount of interest paid each year,

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3 years ago

What are the different elements of working capital and explain actions that Management of a business entity might take to reduce

faltersainse [42]

The different elements of working capital are <u>current current asset and current liabilities</u>. The management of a business entity might take <u>ratio analysis</u> to reduce the cycle.

Working capital management assists in sustaining the smooth operation of the net operating cycle, otherwise called the cash conversion cycle.

<h3>What is working capital management?</h3>

Working capital management is a business strategy formulated to ensure that an organisation functions efficiently by overseeing and utilizing its current assets and liabilities to their most effective use.

Therefore, learn more about working capital management: brainly.com/question/28287025

#SPJ1

4 0

1 year ago

What is the purpose of AH&LA ?

Kryger [21]

AH & LA was made to focus on the needs of every segment of lodging industry.

5 0

4 years ago