When a company receives a dividend from its investee, what will be the effect on the financial statements of the investing company if it uses the equity method?
There will be no effect on the income statement. Cash, however, will be increased by the same amount that the Investment account is decreased. Therefore, total assets and equities will remain the same.
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On December 1, 2016, Vonn Corporation paid $8,000 rent in advance. The rent per month is $1,000 . If Hazel's accounting period ends on December 31, 2016, what will be reported on the financial statements?
a. Prepaid Rent of $7,000 on its balance sheet at December 31, 2016 b. Prepaid Rent of $8,000 on its balance sheet at December 31, 2016 c. Rent Expense of $8,000 on its 2016 income statement d. Rent Revenue of $7,000 on its 2016 income statement
Which of the following tests is most likely to be used for pretesting television commercials?
A) readability test B) theater test C) inquiry test D) recognition test
Feldspar, Inc. started the year with 200 units in the Finished Goods Inventory account. It produced 600 units during the year and sold 800 units. If Feldspar uses variable costing, ________.
A) its operating income for the period will be higher than under absorption costing B) its operating income for the period will be lower than under absorption costing C) its value of ending Finished Goods Inventory reported in the balance sheet will be higher than under absorption costing D) its operating income will be the same as under absorption costing
The existence of ________ allows multinationals to take advantage of unregulated financial markets to invest and raise short-term funds in a variety of countries and to protect themselves from foreign exchange exposure.
A) a strong U.S. dollar B) the International Monetary Fund C) Eurocurrency markets D) European Economic Council