Parent Corporation had just purchased some of its subsidiary's outstanding bonds on the open market. What items related to these bonds will have to be accounted for in the consolidation process?
What will be an ideal response?
For each period that the parent owns the bonds, the bonds must be eliminated on the consolidation worksheet. Eliminating the bonds on the consolidation worksheet requires the elimination of: (i) the parent's investment account; (ii) the portion of the bonds payable that the parent acquired; (iii) interest expense of the issuer; and (iv) interest income of the investor. In the year in which the parent acquired the bonds, a gain or loss must have been recognized. Over the life of the bonds, retained earnings must be debited or credited for the amount of the gain or loss, as adjusted by the previous years' difference between interest expense and interest income.
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Which of the following is not true regarding a Certified Public Accountant?
A. Must pass an examination. B. Cannot hold any certificate other than a CPA. C. Must meet education and experience requirements. D. Must exhibit ethical character. E. May also be a Certified Management Accountant.
Nadia stood outside the mall and asked people which stores they visited and if they bought anything. If they said yes, she asked them what they bought and how they came to the decision to buy that item. What form of research was Nadia most likely conducting?
A. in-depth interviews B. focus group C. biometrics D. questionnaire E. experiment
In which of the following situations should the direct pattern of organization be used for a business report?
A) When readers must be persuaded B) When readers are unfamiliar with the problem C) When readers may be disappointed or hostile toward the report's findings D) When readers are familiar with the topic
Part payment of a liquidated claim
a. discharges the remainder of the claim. b. discharges the remainder of the claim if the creditor marks "paid in full" on any receipt given to the debtor. c. discharges the remainder of the claim if, in addition to the part payment, the debtor gives additional consideration. d. discharges the remainder of the claim if the debtor states that he or she has no more funds with which to pay the remainder of the debt.