What is the major advantage of the accounting rate of return relative to the other techniques that can be used to evaluate capital projects?
The accounting rate of return has two major advantages relative to the other capital budgeting techniques. First, it may be more compatible as an investment criterion with criteria that are used to evaluate managerial and segment performance particularly for investment centers that are evaluated on an ROI or RI basis. Second, the accounting rate of return can be generated from accounting data and is therefore easy to track over the life of the investment.
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In a short essay, explain the appeal of census data to marketers
What will be an ideal response?
Stiller Company, an 80% owned subsidiary of Leo Company, purchased land from Leo on March 1, 2017, for $75,000. The land originally cost Leo $60,000. Stiller reported net income of $125,000 and $140,000 for 2017 and 2018, respectively. Leo uses the equity method to account for its investment.On a consolidation worksheet, having used the equity method, what adjustment would be made for 2018 regarding the land transfer?
A. Debit investment in Stiller for $15,000. B. Credit retained earnings for $15,000. C. Debit retained earnings for $50,000. D. Debit retained earnings for $15,000. E. Credit retained earnings for $50,000.
Updating information in a computerized accounting system happens at the end of the month
Indicate whether the statement is true or false
In the context of savings, identify a true statement.
A. Interest rates on savings accountshave typically been uniform across banks. B. Online savings banks have often provided higher interest rates than traditional banks in recent years. C. TheFederal Deposit Insurance Corporation is not eligible to insure deposits made in online savings banks. D. TheFederal Deposit Insurance Corporation (FDIC)insures individual deposits up to $550,000 per account in FDIC-insured banks.