U.S. GAAP and IFRS require firms to account for minority, active investments, generally those where the investor owns between _____ using the equity method. Under the equity method, the investor recognizes as revenue (expense) each period its share of the net income (loss) of the investee. The investor recognizes dividends received from the investee as a return (reduction) of investment, not as
income.
a. 10% and 50%
b. 20% and 50%
c. 30% and 50%
d. 40% and 60%
e. 50% and 60%
B
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During August, the Filtering Department of Rudbeckia, Inc. had beginning Work-in-Process inventory of 120 units with costs of $50,000. 525 units were transferred in during the month. It had 60 units in ending Work-in-Process Inventory. Under the first-in, first-out (FIFO) method, current period equivalent units of production for transferred in units in beginning Work-in-Process Inventory of the Filtering Department is ________.
A) 0 units B) 525 units C) 120 units D) 60 units
Which of the following represents a permanent difference?
a. Point-of-sale revenue recognition for financial reporting purposes, installment method for tax purposes b. Goodwill amortization deducted on the tax return but not amortized for financial reporting purposes c. Straight-line depreciation for financial reporting purposes, accelerated depreciation for tax purposes d. Carryback, carryforward option for taxes, no such option for financial reporting purposes
As a result of Bretton Woods and the resulting dollar's use as a proxy for gold, the U.S. ran up a balance of payments deficit of around $56 billion, which led to the U.S. going off the gold exchange standard in 1971.
Answer the following statement true (T) or false (F)
Which of the following is NOT one of the main reasons for companies to maintain an SPM database?
a. to analyze and compare the performance of suppliers b. to select and reward suppliers who perform well c. to eliminate suppliers with poor performance records d. to eliminate long-term performing suppliers