additional losses‚ which of the following statements is true? A. The investor should change to the fair-value method to account for its investment. B. The investor should suspend applying the equity method until the investee reports income. C. The investor should suspend applying the equity method and not record any equity in income of investee until its share of future profits is sufficient to recover losses that have not previously been recorded. D. The cumulative losses should be reported
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goods inventory‚ December 31‚ 2012 $ 167‚350 Cost of goods manufactured 1‚935‚650 Goods available for sale 2‚103‚000 Less finished goods inventory‚ December 31‚ 2013 136‚490 Cost of goods sold 1‚966‚510 Gross profit from sales 2‚495‚990 Operating expenses Selling expenses Advertising expense 28‚750 Depreciation expense—Selling equipment 8‚600 Rent expense—Selling space 26‚100 Sales salaries expense 392‚560
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17 RATIO ANALYSIS FEATURING THE DUPONT METHOD: AN OVERLOOKED TOPIC IN THE FINANCE MODULE OF SMALL BUSINESS MANAGEMENT AND ENTREPRENEURSHIP COURSES Submitted by Thomas J. Liesz University of Idaho (208) 885-5447 (office) tliesz@uidaho.edu Steven J. Maranville University of Houston-Downtown One Main Street Houston‚ TX 77002-1001 (713) 221-8524 maranvilles@uhd.edu Submitted to Small Business Institute Journal The authors wish to acknowledge the valuable comments of two SBIJ reviewers
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operating section. True False 4. When the net cash flows from operating‚ investing‚ and financing activities are combined to arrive at the overall net change in cash‚ a net decrease in cash is subtracted from the beginning cash balance to calculate the ending cash balance. True False 5. Major investing and financing activities that do not involve cash do not have to be reported as part of the statement of cash flows. True False 6. In general‚ the cash flow from operating activities
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Justin Fondriest Professor Timothy Groves BSA/310 October 21‚ 2012 Profit and Loss Statement Paper Before beginning‚ it should be noted that although this project is to be for a Profit and Loss (P&L) Statement‚ only an Income Statement is available at the Kudler Fine Foods website (Apollo Group‚ 2011). However‚ Income Statements and P&L Statements are‚ for all intents and purposes‚ the same thing. With that said‚ it cannot be determined conclusively
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CORPORATE ACCOUNTS Retained earnings is the profit generated by a company that are not distributed to stockholders (shareholders) as dividends but are either reinvested in the business or kept as a reserve for specific objectives (such as to pay off a debt or purchase a capital asset). A balance sheet figure shown under the heading retained earnings is the sum of all profits retained since the company’s inception. Retained earnings are reduced by losses‚ and are also called accumulated
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Financial Accounting Easy: 1. Which of the following is usually considered cash? a. Certificate of deposit b. Checking account c. Money market saving certificate d. Postulated Check 2. In preparing the August 31‚ 2011 bank reconciliation‚ Apex Company provided the ff. information Balance per bank statement 1‚805‚000 Deposit in transit 325‚000 Return of customer’s check for 60‚000 Insufficient fund Outstanding checks 275‚000 Bank service change
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is vital to our economic system. 2. Identify and describe the steps in the accounting process. 1. Identifying the financial transaction a business may perform several transactions. Of which‚ only financial transactions are recorded in accounts. In the first step of the accounting process‚ therefore‚ financial transactions are identified. Financial transactions are those which are expressed in monetary terms. 2. Recording of Financial Transactions In the second step of accounting
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Off balance sheet financing is financing from sources other than debt or equity offerings‚ such as joint ventures‚ research and development partnership and operating leases. For complex institutions such as banks‚ they increase their use of off shore subsidiaries and swap transactions to avoid disclosing liabilities. In other words‚ off balance sheet accounting is a process which a business creates what is practically a debt that it must pay off‚ but the debt is accounted as another type of transaction
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Net income is calculated by matching cash outflows against cash flow C. Events that change a company’s financial statements are recognized in the periods they occur rather than in the period in which cash flow is paid or received. D. The ledge account must be adjusted to reflect a cash basis of accounting before a final statements are
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