Answer the following statements true (T) or false (F)
1. Under the equity method, the Equity Investments account is credited for the receipt of a dividend because the dividend decreases the investor's investment.
2. Under the equity method, the investee must annually record its share of the investor's net income.
3. A company that is controlled by another corporation is called a subsidiary company.
4. Consolidated statements combine the balance sheets, income statements, and statement of cash flows of
5. Consolidation accounting is the way to combine the financial statements of two or more companies that have the same owners.
1. TRUE
2. FALSE
3. TRUE
4. TRUE
5. TRUE
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Financing activities are those transactions dealing with the exchange of cash between the firm and its owners (stockholders) and creditors
a. True b. False Indicate whether the statement is true or false
Assets no longer used in operations are accounted for in essentially the same manner as those used in operations.
Answer the following statement true (T) or false (F)
Which of the following is one of the steps in Kotter’s 8-Step Model of Planned Change?
a. unfreeze b. innovate c. refreeze d. none of these
Use the information below to determine the sales revenue, cost of goods sold and gross profit that would be reported for the company related to the March 16 sale assuming the company uses weighted average inventory valuation and a perpetual inventory system.January 1:Purchased 100 units at $10 per unit.February 5:Purchased 60 units at $12 per unit.March 16:Sold 40 units for $16 per unit.
What will be an ideal response?