Beige Corporation pays $536,000 to acquire 40% of the equity securities of Olive Technologies, Inc. on May 5, 2017. In the journal entry to record this transaction ________
A) Long-term Investments-Trading Investments will be debited for $536,000
B) Long-term Investments-Olive Technologies, Inc. will be debited for $536,000
C) Long-term Investments-Available-for-Sale will be debited for $536,000
D) Long-term Investments-Available-for-Sale will be credited for $536,000
B
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An operating segment is a component of a company that does all of the following except
A) has financial information available. B) engages in business activities to earn revenues and incur expenses. C) is part of a publicly held company. D) has operating results that are regularly reviewed by the company's chief operating officer.
An internal issue to be considered when setting a price is
a. whether there is a sole source or heavy competition. b. total demand for the product or service. c. the quality of material and labor. d. the number of competing products or services.
In general, decreasing (or eliminating) the resources committed to nonvalue-added activities will decrease customer response time.
Answer the following statement true (T) or false (F)
The "degree of leverage" concept is designed to show how changes in sales will affect EBIT and EPS. If a 20.00% increase in sales causes EPS to increase from $1.00 to $1.50, and if the firm uses no debt, then what is its degree of operating leverage? Do not round intermediate calculations.
A. 2.1250 B. 2.8500 C. 2.4750 D. 2.5000 E. 2.0000