Provide the following information for controlling interest equity investments:
1. Which accounting method is used?
2. What is the balance sheet effect when using this accounting method?
3. What is the income statement effect when using this accounting method?
1. Consolidation accounting method
2. The balance sheets of the parent and subsidiary are combined.
3. The income statements of the parent and subsidiary are combined.
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Which of the following is not an enhancing qualitative characteristic?
A) Verifiability B) Timeliness C) Understandability D) Neutrality
Explain how a market follower can gain advantage from a market leader
What will be an ideal response?
Darius was driving his car negligently and collided with Georgette. Darius was not going that fast, and normally, the injuries suffered by Georgette would not have been that severe
Unfortunately, she suffers from a progressive nerve disease which is aggravated by the accident. Which of the following is TRUE? A) Darius is not responsible for the additional damages attributed to Georgette's condition. They were reasonably foreseeable. B) Darius is responsible for some of the additional damages attributable to Georgette's condition – namely, the extent to which the accident worsened her condition. C) Darius is responsible for all for the additional damages attributed to Georgette's condition. D) This case is an illustration of the "crumbling skull plaintiff." E) Both B and D.
Grace Company sold equipment for $40,000 cash. The equipment has cost $70,000 and had accumulated depreciation of $44,000 at the time of the sale. Based on this information alone, which of the following statements is true?
A. Cash flow from investing activities would be the same regardless of whether the sale of equipment is reported on the statement of cash flows under the direct method or the indirect method. B. Cash flow from investing activities would be less if the sale of equipment is reported on the statement of cash flows under the direct method than if it is reported under the indirect method. C. Cash flow from investing activities would be greater if the sale of equipment is reported on the statement of cash flows under the direct method than if it is reported under the indirect method. D. The answer cannot be determined because the amount of the salvage value is unknown.