List and briefly describe the method used to account for investments in equity securities with 50% or more ownership
What will be an ideal response
Consolidation accounting is used by the investing company to account for equity securities that represent 50% or more ownership of the investee's outstanding voting stock. Consolidation accounting is the way to combine the financial statements of two or more companies that have the same owners. Consolidated financial statements combine the balance sheets, income statements, and statements of cash flows of the parent company (the investor) with those of its controlling interest affiliates (the investees). The final outcome is a single set of financial statements, as if the parent and its subsidiaries were the same entity.
You might also like to view...
System flowcharts
a. depict logical tasks that are being performed, but not who is performing them b. illustrate the relationship between database entities in systems. c. represent relationships between key elements of both manual and computer systems. d. describe the internal logic of computer applications in systems. .
The average price of a suit purchased at Men's Wearhouse is $349.99. This is most likely a(n) ________ pricing tactic.
Fill in the blank(s) with the appropriate word(s).
Schriever Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed element per monthVariable Element per Well ServicedRevenue $4,500Employee salaries and wages$57,200 $1,100Servicing materials $600Other expenses$31,000 ?The planning budget for May was based on 36 wells serviced, but a total of 31 wells were actually serviced in May.?The activity variance for net operating income for May would have been closest to:
A. $14,000 U B. $9,800 U C. $14,000 F D. $9,800 F
For a noncompensatory employee stock option plan, a formal journal entry or entries would be required for which of the following events? Issuance of StockIssuance of Stock Purchase RightsUnder the PlanI.YesYesII.YesNoIII.NoNoIV.NoYes?
A. I B. II C. III D. IV