What is the primary objective of the equity method of accounting for an investment?
What will be an ideal response?
The objective of the equity method is to reflect the special relationship between investor and investee. The equity method is used when the investor holds a relatively large share of the investee, but not a controlling interest. The large ownership percentage indicates that the investor has the ability to influence the decision-making processes of the investee. Use of the fair-value method would not reflect the relationship between the two parties.
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In a linear relationship formula, the intercept = b
Indicate whether the statement is true or false
The entry to record a sale on account of $1,500 plus tax of $75 would be:
a. debit accounts receivable $1,575, credit sales $1,500, credit sales tax payable $75. b. debit accounts receivable $1,575, credit sales $1,575. c. debit cash $1,575, credit accounts receivable $1,500, credit sales tax payable $75. d. debit cash $1,500, credit sales $1,500.
Which environmental marketing strategy involves identifying environmentally friendly practices that also have the effect of creating cost savings and driving efficiencies throughout the organization?
A. eco-branding B. beyond compliance leadership C. eco-efficiency D. environmental cost leadership E. sustainable value innovation
To be an effective listener, a person should
A) avoid the insult of paraphrasing the sender's message. B) help the sender finish his or her message. C) use certain words to shut down discussion. D) accept the sender's figure of speech.