Why do accountants sometimes refer to the equity method as a one-line consolidation?
Accountants sometimes refer to the equity method as a one-line consolidation because the revenues less the expenses of the subsidiary appear in the one account, Equity in Earnings of Subsidiary, and the assets and liabilities of the subsidiary appear on one line, Investment in Subsidiary. Application of the equity method therefore rests on this guiding principle: treat the items in such a way that the parent's net income equals the same amount that it would report if it consolidated the investee firm instead of using the equity method.
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Perceptions involve recalling an old reaction to a new stimulus
Indicate whether the statement is true or false.
A company paid $0.54 in cash dividends per share. Its earnings per share is $4.26 and its market price per share is $29.25. Its dividend yield equals:
A. 12.68%. B. 14.56%. C. 5.42%. D. 1.85%. E. 7.89%.
Research indicates that leaders of innovative firms spend 50 percent more time on discovery activities than the leaders of less innovative firms.
Answer the following statement true (T) or false (F)
A retailer's decisions about Place would include decisions about which of the following?
A. whether to offer a store credit card B. salesperson training C. which brands to sell D. a physical store and/or an online store E. in-store displays