If an investor's ownership interest in a significant influence investment increases or decreases, how are changes from accounting at fair value to the use of the Equity Method (or vice-versa) to be handled?
A) Changes from the Equity Method are to be handled retroactively, while changes to
the Equity Method are to be handled prospectively.
B) Changes from the Equity Method are to be handled prospectively, while changes to
the Equity Method are to be handled retroactively.
C) Any change is to be handled retroactively.
D) Any change is to be handled prospectively.
D) Any change is to be handled prospectively.
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Regarding discontinued operations, which of the following statements is incorrect?
A) Gain and losses on the sale of plant assets are not reported as discontinued operations. B) A loss on discontinued operations is reported with an addition for the applicable income tax. C) Most analysts do not include the results of discontinued operations in financial analysis. D) The discontinued operations heading of the income statement includes segments of the business that have been sold.
Eric works as a manager in the marketing department of a pharmaceutical firm. The time has come to develop sales forecasts for the next year. This year the company wants to increase the reliability of the sales forecast. Eric was asked to participate in this process because of his extensive market knowledge. He joins a group of other experts in the area. Individuals in Eric's group all submit their own forecasts. These forecasts are then averaged, and the results are given back to the group so they can refine them. The intent is to reach a consensus by working separately on these forecasts. What type of forecasting technique is this?
A. Regression analysis B. Random factor analysis C. Delphi technique D. Executive judgment E. Time series analysis