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nika2105 [10]
3 years ago
11

What are new guidelines issued by GAAP for consolidating entities

Business
1 answer:
Brut [27]3 years ago
6 0
Consolidation Rules Under GAAP

The general rule requires consolidation of financial statements when one company’s ownership interest in a business provides it with A MAJORITY OF the voting power- meaning it controls more then 50% of the voting shares
You might be interested in
What would marginal analysis put an emphasis on?
DIA [1.3K]
The answer to this question is: <span>additional costs and benefits.
</span><span> is an examination of the additional benefits that received from doing an activity compared to the cost that must be incurred in order to do that activity.
</span>This analysis will help companies to determine what operations that they should maintain in the future in order to keep the profit margin of the company.
5 0
3 years ago
Do you think calling an employee a subordinate will impact their motivation levels?
WITCHER [35]

Answer:

I believe that referring to the employee as a subordinate can negatively affect the employee's motivation levels.

Explanation:

Although an employee is subordinate to the company owner, or to other high-ranking employees, such as a manager, for example. Referring to the employee as a subordinate can negatively affect the employee's motivation and productivity. This is because this word can pass a tone of devaluation, where the employee can understand that he is not esteemed and necessary within the company. The feeling of irrelevance, can leave the employee saddened and unwilling to do his best work within the institution.

8 0
3 years ago
A company is obligated to pay its creditors $6,460 at the end of the year. If the value of the company's assets equals $6,304 at
rosijanka [135]

Answer:

The shareholders equity=-$156, this means that the liabilities outweigh the assets by $156.

Explanation:

The shareholder's equity can be defined as the net value of a company. It basically is the amount that shareholders would receive if all the company's assets were liquidated and all of the company's debt also paid back. The shareholder's equity is usually found on the company's balance sheet and can be used as a financial measure to determine the company's financial status. The shareholder's equity is determined from subtracting the company's totals liabilities from its total assets. This can be expressed in the formula below;

E=A-L....equation 1

where;

E=shareholder's equity

A=total assets

L=total liabilities

The total assets represents everything that has some economic value to the company. A liability is an obligation to something or anything of economic value that the company owes. In our case, the company has an obligation to pay it's creditors $6,460 at the end of they year. This is a liability.

Use equation 1 above to solve;

E=unknown, to be determined

A=$6,304

L=$6,460

replacing;

E=(6,304-6,460)=-$156

The shareholders equity=-$156, this means that the liabilities outweigh the assets by $156.

3 0
3 years ago
Which of the following does NOT provide for incentives based on standards that are expressed in terms of time period per unit of
Lisa [10]

Answer:

a. Merrick System

Explanation:

Merrick System does not provide for incentives based on standards that are expressed in terms of time period per unit of production

6 0
3 years ago
Question 6 Professor Fader discussed "salesperson of the month." What would he say is the best way to pick a salesperson of the
Ghella [55]

Answer:

The best way for Professor Fader to pick the Salesperson of the Month is to measure the change in <u>total customer lifetime value</u> for that month delivered and give the award to the salesperson with the highest points.

Explanation:

Total Customer Lifetime Value (CLV) refers to the total value delivered by a customer over a particular period not just in the number of purchases they have made. A customer's value also includes, but is not limited to:

The formula for calculating CLV is by:

(Annual Customer Revenue X Lenth of Relationship in Years) - (Total costs of acquiring plus Total Cost of  Serving the customer)

or  

(ACR x LR)-(TCA+TCS) = CLV

Cheers!

6 0
3 years ago
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