What is the justification for the timing of recognition of income under the equity method?
What will be an ideal response?
According to the equity method, the investor should recognize its share of the investee's income in the same period in which it is earned by the investee. The equity method applies accrual accounting when the investor could exercise significant influence over the investee.
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The decisions of the U.S. Supreme Court can be appealed to higher courts.
Answer the following statement true (T) or false (F)
An auditor is testing internal control procedures that are evidenced on an entity's vouchers. To select the vouchers for testing, the auditor obtains random numbers between the first and last voucher number in the period. If a random number matches the number of avoided voucher, that voucher ordinarily should be replaced by another voucher in the random sample if the voucher:
A. represents an immaterial dollar amount. B. cannot be located. C. has been properly voided. D. constitutes a deviation.
________ presentation method is best suited for selling trivial products.
A. Canned sales approach B. Need satisfaction C. Transactional selling D. Problem-solution E. Formula sales approach
Which of the following is correct when making a decision about outsourcing?
A) If the differential costs of making the product exceed the differential costs of outsourcing, the product should be outsourced. B) If the unavoidable fixed costs of making the product exceed the unavoidable fixed costs of outsourcing, the product should not be outsourced. C) If the differential costs of making the product exceed the differential costs of outsourcing, the product should not be outsourced. D) If there are no additional unavoidable fixed costs, the product should be outsourced.