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GAAP recognizes 3 ways to report investments in other companies correct answers 1) Fair-Value Method 2) Consolidation 3) Equity Method Fair-Value Method correct answers 1) Investor usually holds small percentage of equity securities of the investee (<20%) 2) Investor cannot significantly affect investee's operations 3) Investment is made in anticipation of dividends or market appreciation Consolidation correct answers 1) Investors ownership >50% of the investee 2) One set of ...

Which of the following items is likely to be found in a company's statement of changes in equity? 1) dividends paid 2) surplus on revaluation of non-current assets 3) premium on the issue of shares correct answers 1, 2 & 3 The purpose of this statement is to show how the equity holder's funds have increased/ decreased during the reporting period. Regarding the way in which dividends are disclosed according to the International Accounting Standard (IAS) 1, the Standard allows a c...

Introduction to accounting for equity investments correct answers - The lecture considers how to account for equity investments where the investor does not have control over the investee - To determine the correct accounting treatment for equity investments a number of factors should be considered: What is the nature of the investor's operations? Is the investment held for trading purposes? What degree of control or influence can the investor exert over the investee? - If the investor h...

callable preferred correct answers Preferred stock that can be repurchased by issuer for a preset price common stock correct answers The residual equity interest in a corporation; last in liquidation but usually receiving the full benefits of any corporate growth convertible preferred correct answers Preferred stock that can be exchanged for common stock at some preagreed ratio cumulative preferred correct answers Preferred stock that is entitled to a periodic dividend, and those divide...

Describe the motivations for a firm to gain significant influence over another firm: correct answers Equity share ownership typically provides voting privileges to elect members to a firm's board of directors. This allows them to exercise voting rights over their investee to wield power over the strategic direction of the investee in ways that align with their own operating and financial interests. Define Fair Value: correct answers The price that would be received to sell an asset or paid...

Asset correct answers cash Asset correct answers supplies Asset correct answers land Asset correct answers prepaid accounts Asset correct answers buildings Asset correct answers notes receivable Asset correct answers equipment Asset correct answers accounts receivable Liability correct answers accounts payable Liability correct answers accrued liabilities Liability correct answers notes payable Liability correct answers unearned revenue Equity Accounts correct...

Define Shares (2) correct answers - units of ownership which may be bought + sold - entitles holder to participate in decision making process + share of profits What is the purpose of Shares (3) correct answers - determine portion of profit holder gets - determines voting power at meetings - afford opportunity to liquidate some invesment Discuss Rights of Shareholders (4) correct answers - participate in profits of company in proportion to shareholdings - receive due to notice of meeti...

Generally accepted accounting principles (GAAP) recognize four different approaches to the financial reporting of investments in corporate equity securities: correct answers 1.) Fair-value method. 2.) Cost method for equity securities without readily determinable fair values. 3.) Consolidation of financial statements. 4.) Equity method. The financial statement reporting for a particular investment depends primarily on _______________________. correct answers the degree of influence that th...

Equity correct answers ...represents investments by stockholders in the company. Two Components of Equity on Balance Statement correct answers - Contributed Capital: Direct investments by the firms' owners. Owners receive stock in exchange for their contributions to the firm. - Retained Earnings: Indirect investment by the firm's owners. These are earnings that are not distributed back to the owners and are instead kept in the company. Contributed Capital: correct answers Direct i...

Antepartum Complications questions(Correct answers) Chapter 12: Nursing Care to Promote Fetal and Maternal Health(100% Verified) NCLEX PREP: Maternal Antepartum Complications(100% Correct answers) Chapter 12: Nursing Management During Pregnancy (PrepU)( Complete solutions) Complications of pregnancy (infections)/The childbearing family with spe