Answer:
The main determinant of profit is in any business is the number of production units.
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Explanation:
Use a light colored background
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<span>What are notes or accounts receivable that result from sales transactions often called? Trade receivables.
A trade receivable is the amount billed to a customer when another company delivers olds or services to them for business use. They are documented in accounts receivable and given as an invoice for the customer to pay the delivering party.
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Answer:
c.GAS Running Company is required to use the equity method for this investment.
Explanation:
a.GAS Running Company is the subsidiary company.
-> wrong, because in this case Gas Running Company own shares of Zoom Shoes Inc., not vice versa
b.Zoom Shoes Inc. is the parent company.
-> wrong, same explanation as above for (a)
c.GAS Running Company is required to use the equity method for this investment.
-> true
Equity method in accounting is the process of treating investments in associate companies... is used in accounting when a company holds approximately 20% to 50% of a company's stock and this is considered to have significant influence.
The holding of Gas Running Company in Zoom Shoes Inc. is 30.4% (=35,000 shares/ 115,000 shares of stock outstanding), is less 50% stakes. That requires Gas Running Company to use Equity method accounting to use the equity method for this investment.
d.GAS Running Company is required to combine the financial statements of Zoom Shoes Inc. and report as a single company.
-> wrong, same explanation as above for (c)