If the maturity date of Treasury bills is less than 90 days, they are classified as
A) cash equivalents.
B) short-term investments.
C) long-term investments.
D) current liabilities.
A
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An example of an item that is deducted from net income when preparing the operating activities section of the statement of cash using the indirect method is
a. depreciation expense. b. compensation expense related to stock option plans. c. income from an investment accounted for using the equity method. d. unrealized losses on trading investments
On January 1, 20X6, Pumpkin Corporation acquired 70 percent of Spice Company's common stock for $210,000 cash. The fair value of the noncontrolling interest at that date was determined to be $90,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: PumpkinSpiceCash $50,000 $15,000 Accounts Receivable 70,000 25,000 Inventory 30,000 20,000 Land 150,000 80,000 Buildings and Equipment 250,000 200,000 Less: Accumulated Depreciation (70,000) (20,000) Investment in Spice Co. 210,000 Total Assets $690,000 $320,000 Accounts Payable $40,000 $10,000 Bonds Payable 150,000 40,000 Common
Stock 300,000 90,000 Retained Earnings 200,000 180,000 Total Liabilities and Equity $690,000 $320,000 At the date of the business combination, the book values of Spice's assets and liabilities approximated fair value except for inventory, which had a fair value of $30,000, and land, which had a fair value of $95,000.Based on the preceding information, what amount of total assets will be reported in the consolidated balance sheet prepared immediately after the business combination? A. $800,000 B. $1,010,000 C. $830,000 D. $1,040,000
The corporation owning all or a majority of the voting stock of another corporation is known as the parent company
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
The functional currency is defined as the currency of the country in which the foreign subsidiary is located.