CHAPTER 3 CONSOLIDATIONS—SUBSEQUENT TO THE DATE OF ACQUISITION Answers to Discussion Questions How Does a Company Really Decide which Investment Method to Apply? Students can come up with literally dozens of factors that should be considered by Pilgrim in making the decision as to the method of accounting for its subsidiary‚ Crestwood Corporation. The following is simply a partial list of possible points to consider. Use of the information. If Pilgrim does not monitor its own income levels
Premium Generally Accepted Accounting Principles Goodwill Depreciation
Advanced Accounting Assignment Week 7 1. Which of the following combinations correctly describes the relationship between foreign currency transactions‚ exchange rate changes‚ and foreign exchange gains and losses? Answer: c. Import purchase‚ Depreciates and Gain 3. On October 1‚ 2013‚ Mud Co.‚ a U.S. company‚ purchased parts from Terra‚ a Portuguese company‚ with payment due on December 1‚ 2013. If Mud’s 2013 operating income included no foreign exchange gain or loss‚ the transaction could
Premium United States dollar Currency Exchange rate
ACCOUNTING THEORIES 1. What is the difference between a positive theory of accounting and a normative theory of accounting? 2. What do we mean when we say that ‘theories are abstractions of reality’? Do you agree that theories of accounting are necessarily abstractions of reality? 3. Identify and explain 5 different criteria we might use to establish a theory as being suitable for use in our research. 4. Is the study of financial accounting theory a waste of time for accounting
Premium Balance sheet
1. Accounting standard-setting environments 2. Financial instruments and income tax allocation 3. Introduction to intercorporate investments 4. Consolidation subsequent to acquisition 5. Intercompany transactions 6. Issues in ownership interests and joint ventures 7. Foreign activities 8. Translation and consolidation of foreign subsidiaries 9. Financial reporting in the not-for-profit and public sectors 10. Fund accounting 11. Accounting standard-setting environments
Premium Finance Income tax
method of accounting for investments Answers to Discussion Questions The textbook includes discussion questions to stimulate student thought and discussion. These questions are also designed to allow students to consider relevant issues that might otherwise be overlooked. Some of these questions may be addressed by the instructor in class to motivate student discussion. Students should be encouraged to begin by defining the issue(s) in each case. Next‚ authoritative accounting literature
Premium Generally Accepted Accounting Principles Dividend
Advanced Management Accounting Chapter 1 A management accounting system is an information system that collects operational and financial data‚ processes it‚ stores it‚ and reports it to users (such as workers‚ engineers‚ managers‚ and executives). What the organization tries to deliver to customers is called its value proposition Planning includes activities such as product planning‚ production planning and strategy development. What are the four generic elements of an organization’s
Premium Costs Variable cost Management accounting
Strengths and weaknesses of the service industry in the UAE Student name: Rashed Salem Al Mansoori ID: 111 210 153 Economy of countries is composed of different sectors that work together in an integrated way so as to form the entire economy of the country . The importance of the role that each sector plays in the economies of countries differs from one country to another as a result of the strength or weakness of that sector. Regarding the UAE ‚ it is a country of a strong economy especially
Premium Economy Tertiary sector of the economy United Arab Emirates
Week Three Exercise Assignment Inventory 1. Specific identification method. Boston Galleries uses the specific identification method for inventory valuation. Inventory information for several oil paintings follows. Painting Cost 1/2 Beginning inventory Woods $21‚000 4/19 Purchase Sunset 21‚800 6/7 Purchase Earth 31‚200 12/16 Purchase Moon 4‚000 Woods and Moon were sold during the year for a total of $35
Premium Depreciation Inventory
on this investment in 2011? Choose one answer. a. $9‚000. b. $16‚500. c. $7‚500. d. $50‚000. e. $25‚500. Correct Marks for this submission: 1/1. Question 2 Marks: 1 An upstream sale of inventory is a sale: Choose one answer. a. with the transfer of goods scheduled by contract to occur on a specified future date. b. between subsidiaries owned by a common parent. c. made by the investor to the investee. d. made by the investee to
Premium Generally Accepted Accounting Principles Balance sheet Asset
Project Part B: Hypothesis Testing and Confidence Intervals a. The average (mean) annual income was less than $50‚000 Null Hypothesis: The average annual income was greater than or equal to $50‚000 H₀: µ > 50000 Alternate Hypothesis: The average annual income was less than $50‚000. Ha: µ > 50000 Analysis Plan: Significance Level‚ α=0.05. Since the sample size‚ n > 30 I will use z-test for mean to test the given hypothesis. As the alternative hypothesis is Ha: µ > 50000‚ the given test is
Premium Statistical hypothesis testing Statistics Statistical inference