A firm that can exert significant influence over another entity accounts for its intercorporate investment by
a. using the equity method.
b. recognizes its share of the net income or net loss of the investee, after eliminating any intercompany income items, and increases (in the case of net income) or decreases (in the case of net loss) its investment account in an equal amount.
c. comparing the acquisition cost of the investment to determine whether it exceeds the investor's interest in the net assets of the investee at the time of the acquisition, the investor must decide if the excess relates to assets or liabilities of the investee with a limited life.
d. decreasing the investment account for dividends received.
e. all of the above.
E
You might also like to view...
Which of the following is an example of abuse of power?
A. Disrespecting individual dignity B. Interfering with job performance C. Withholding deserved rewards D. Discouraging employees from helping others E. All of these are correct.
Which of the following is/are not true regarding the Raw Materials Inventory account?
a. The Raw Materials Inventory account includes the cost of raw materials purchased but not yet transferred to the factory floor. b. The merchandising firm records purchases of raw materials as debits to the Raw Materials Inventory account. c. When the manufacturer physically transfers raw materials to the factory floor, it also transfers the cost of the raw materials from the Raw Materials Inventory account to the Work-in-Process Inventory account. d. When the manufacturer physically transfers raw materials to the factory floor, it records this transfer as a credit to the Raw Materials Inventory account for the cost of the raw materials transferred and a debit to the Work in Process Inventory account. e. all of the above
Define corporate social responsibility and provide an example.
What will be an ideal response?
A fund raiser for United Way who divides his organization's donor mailing list into three groups and sends out a different kind of solicitation for each group and compares the relative response rates is doing
a. convenience sampling b. focus group research c. experimentation d. target audience analysis e. Association analysis