25. A parent company’s investment account would include an element which is representative of : Multiple Choice the unrecorded difference between fair value and book value of the investee’s assets. the unrecorded book value of the investor’s assets. the goodwill accrued since the purchase of the investee. the recorded current value of the investee’s assets.
Q: Voluntary settlements Classify each of the following voluntary settlements as an extension, a…
A: Composition settlements are those where the debtor pays less than the full amount due. An extension…
Q: You are conducting an audit on your client's revenue cycle for the 2019 financial year. Your client…
A: The auditor is appointed to form an opinion on the financial statement and the auditor before…
Q: If Quail Company invests $50,000 today, it can expect to receive $10,000 at the end extra $6,000 at…
A: calculation of net present value are as follows
Q: Statement of cash flows-indirect method Instructions Instructions 1 2 3 Cash 4 Accounts receivable…
A: Introduction: Statement of cash flows is one of financial statement that depicts movement of cash in…
Q: The standard cost card for product Alpha is as follows: £ Direct material 5kg@ £11.50…
A: Lets understand the basics. Direct material price variance is variance between the rate at which…
Q: Use the data below to construct the advance/decline line for the stock market. Volume figures are in…
A: Advance/Decline = Stocks Advancing - Stocks Declining For example, for Monday advance/decline =…
Q: Financial reporting includes general-purpose financial statements, information from SEC 10-K and…
A: Standard procedures for providing stakeholders with an accurate picture of a company's finances,…
Q: September 1, 2024, Jacob Furniture Mart enters into a tentative agreement to mis division qualifies…
A: Book value of Assets : It is the amount of assets after deducting the depreciation shown on the…
Q: Depletion is different from depreciation and amortization in that depletion is: Multiple Choice O O…
A: A physical asset's cost is distributed over its life span by depreciation, the cost of extracting…
Q: Which of the following best describes a variable cost? A cost that: a. Represents a fixed…
A: Variable cost is the cost incurred during the production of units which will be directly…
Q: True or False Merchandise inventory consists of products that a company acquires to resell to…
A: Merchandise inventory refers to inventory held by the company.
Q: Which of the following would NOT be shown in the Statement of Profit or Loss? Expired portion of…
A: Income statement shows the income earned and loss incurred by the organization in the financial…
Q: Use the following Adjusted Trial Balance to prepare the four journal entries required to close the…
A: Closing entries are used to close the temporary accounts to the permanent account. The income…
Q: AUDIT OF RECEIVABLE ACCOUNTS AND ALLOWANCE FOR DOUBTFUL ACCOUNTS The company's policy is to allow…
A: Accounts payable is one side of a ledger entry in the double-entry accounting system. The other is…
Q: Exercise 5-7 Recording sales, purchases, shipping, and returns-buyer and seller LO P1, P2 Sydney…
A: Introduction: Each journal entry contains details about a single business transaction, such as the…
Q: Ridgeway Ltd is a company that has manufactured steel shelving systems for sale to retail customers.…
A: The cash flow statement is a summary report of the cash inflows and outflows during the period. The…
Q: A manager in your organization just received a special order at a price that is “below cost.” The…
A: This is the case of a ‘special order’. In accounting we consider special orders as those one off…
Q: he table below shows the closing monthly stock prices for IBM and Amazon. Calculate the exponential…
A: Technical analysis refers to the analysis the market value of the asset using various technical…
Q: Boston Accounting Services provides accounting services to small businesses. The following data…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: Alexandra and Beatrice are deciding where to live during college. Alexandra can live at her parents…
A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…
Q: Which of the following s he violated?
A: An employee working in an organization must have some ethics and values. The employee should work…
Q: Smith-Kline Company maintains inventory records at selling prices as well as at cost For 2021, the…
A: LIFO was an costing method where it was used in inventory valuation in which the recent produced…
Q: 5.6. is wrong
A: Auditing refers to the financial statements verification or investigation in order to check the…
Q: Andreasen Corporation manufactures thermostats for office buildings. The following is the cost of…
A: Lets understand the basics. When management have special order available then management try to…
Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…
A: In order to increase the sales revenue, the business organizations sells their goods on a credit…
Q: On January 1, 2020, Churl Company paid $1,700,000 for a 40% stake in Flip Company. The Flip…
A: Your investment in the subsidiary will be recognized using the equity method or the fair value…
Q: money flow for the stock? (Leave no
A: The money flow index is to be measured the flow of money in and out of a security in a particular…
Q: On September 1, 2024, Jacob Furniture Mart enters into a tentative agreement to sell the assets of…
A: Operating loss net of tax benefit from discontinued operations=Operating loss from discontinued…
Q: and one year ago, compute the following ratios: (1-a) Compute the current ratio for each of the…
A: 1. Current ratio =Current asset/Current liabilities
Q: Prepare a cash budget for the months of May.
A: A Business Entity's ability to pay off its creditors and liabilities, will directly impact its…
Q: The usajusted Trial Balance of FDN Company on June 30, 2022 shows a balance of P565,000 for Debit…
A: Cash balance is the amount of cash that an entity has, during a period. It is the most liquid asset…
Q: Cobe Company has already manufactured 18,000 units of Product A at a cost of $15 per unit. The…
A: The main objective of every business enterprises is to earn profit by satisfying the customers…
Q: On January 1, 2015 P company acquired 80% interest in S Company for P2,000,000 cash. The…
A: calculation of value of goodwill are as follows
Q: 2. Journalize the necessary entries. The accounts have not been closed. 3. What is the amount of…
A: The bank reconciliation statement is prepared at the end of the period normally the end of the month…
Q: Isn't government stock, from an accounting standpoint, just an ordinary accounting concept with a…
A: A credit line in the context business investing refers to the cash created from the execution of a…
Q: Standard Costing, Ethical Behavior, Usefulness of Costing Objective 1, 2, 3 Pat James, the…
A: Accounting Standards- The FASB published these specific standards to address issues in accounting…
Q: Which of the following are true about bankrupt firms in reorganization? A. They may cancel their…
A: This is a multiple-choice question about bankruptcy. Which of the following are true about bankrupt…
Q: The manufacturing cycle efficiency (MCE) was closest to: (Round your Intermediate calculations to 1…
A: Manufacturing cycle efficiency (MCE) refers to a technique or method which is used by the company to…
Q: You must prepare a classified balance sheet.
A: A balance sheet is a representation of an individual's personal or corporation's financial balances…
Q: The end-of-year pretax financial income for UMPI in 2018 was $720,000. It included $40,000 in…
A: Net income is the amount earned by an individual or corporation after subtracting costs, deductions,…
Q: Diderot Drilling Company has leased property on which oil has been discovered. Wells on this…
A: Total cost per barrel can be computed by adding all amount relevant costs like outright payment,…
Q: 11. What is the process by which the cost of a fixed asset over its estimated useful life is…
A: Depreciation is the decline in the usefulness, functionality, and/or value of the asset and the…
Q: Ines Company consigned twenty five (25) calculators, with cost of P800 each, to Hola Company for a…
A: Under consignment sales one party gives their goods to another party for selling. The one who gives…
Q: SafeLife Incorporated has been producing candles with an added ingredient that was advertised to rid…
A: In management accounting, the phrase "relevant cost" refers to avoidable expenses that are only…
Q: The Owner's Capital has a beginning balance of P500,545. The owner gave P500,000 additional…
A: Owner’s equity account is the statement in which owner’s beginning capital and ending capital is…
Q: n its manufacturing plant. The company allocates manufacturing overhead on the basis of direct…
A: The predetermined overhead rate refers to the concept of determining the rate at which the estimated…
Q: Why is eps not a consistently good measure of a firms performanc
A: After all the operating expenses i.e., all the fixed costs, which remain fixed irrespective of the…
Q: The annual report for Sneer Corporation disclosed that the company declared and paid preferred…
A: Dividend is the amount of return paid to the shareholders in the form of return. The dividend…
Q: Using the income tax withholding table in Figure 3, for each employee of Miller Company, determine…
A:
Q: explain the specific identification approach
A: Introduction: Inventory valuation is an accounting practice used by businesses to determine the…
25.
A parent company’s investment account would include an element which is representative of :
-
the unrecorded difference between fair value and book value of the investee’s assets.
-
the unrecorded book value of the investor’s assets.
-
the
goodwill accrued since the purchase of the investee. -
the recorded current value of the investee’s assets.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 21.Which of the following best depicts the computation for the carrying amount of an investment in associate account? Purchase price + Share in the associate's profit - Dividends received - Amortization/Depreciation of undervaluation of assets Purchase price + Share in the associate's profit - Dividends received + Amortization/Depreciation of undervaluation of assets Purchase price + Share in the associate's total comprehensive income -Dividends received - Amortization/Depreciation of undervaluation of assets Number of shares held x Fair value per share19 - What is the monetary expression of the rights of third parties lending to the enterprise over the assets?A) ASSETB) SOURCEC) EXPENSED) CAPITALE) ASSET1. IAS 36 applies to which of the following assets? (a) Inventories. (b) Financial assets. (c) Assets held for sale. (d) Property, plant, and equipment. 2. Value-in-use is (a) The market value. (b) The discounted present value of future cash flows arising from use of the asset and from its disposal. (c) The higher of an asset’s fair value less cost to sell and its market value. (d) The amount at which the asset is recognized in the balance sheet. 3. If the fair value less costs to sell cannot be determined (a) The asset is not impaired. (b) The recoverable amount is the value-in-use. (c) The net realizable value is used. (d) The carrying value of the asset remains the same. 4. If assets are to be disposed of (a) The recoverable amount is the fair value less costs to sell. (b) The recoverable amount is the value-in-use. (c) The asset is not impaired. (d) The recoverable amount is the carrying value. 5. Estimates of future cash flows normally would cover projections over a maximum…
- Q7 How are transaction costs associated with the acquisition of financial assets recognized in the financial statements of the acquiring entity? Select one: a. They are always capitalized to increase the value of the financial asset. b. The treatment depends on the classification of the financial asset at acquisition date. c. They are only capitalized if the amortized cost model is used. d. They are always charged in the profit or loss account in the year in which the transaction was made.All of the following statements are true, except: When property is acquired in exchange for another, its cost is usually determined by reference to the fair value of the asset surrendered When a group of assets is acquired for a lump sum price, the lump sum price should be allocated to the individual assets based on their carrying values. Donation of PPE should be recorded at the fair value of the donated asset Property acquired in exchange for shares or other securities of the enterprise should be recorded at its fair value or the fair value of the securities, whichever is more clearly evidentUnder PFRS 3, when is a gain recognized in consolidating financial information? Group of answer choices a.When the amount of a bargain purchase exceeds the value of the applicable liability held by the acquired company. b.In an acquisition when the value of all assets and liabilities cannot be determined. c.When any bargain purchased is created d.In a combination created in the middle of the fiscal year
- The “excess of the acquirer’s interest in the net fair value of acquiree’sidentifiable assets, liabilities, and contingent liabilities over cost” (formerly knownas negative goodwill) should be A. Reassessed as to the accuracy of its measurement and then recognized immediately in profit or loss.B. Amortized over the life of the assets acquired.C. Carried as a capital reserve indefinitely.D. Reassessed as to the accuracy of its measurement and then recognized in retained earnings.1. When reclassification is made from owner occupied property to investment property that will be carried at fair value, any excess of the fair value over the carrying amount at the date of transfer is a. ignored. b. recognized as a gain in profit or loss, c. credited to asset revaluation surplus. d. recorded as a credit to a liability account2. Which of the following are valid statements regarding measurement of investment property? I. The best evidence of fair value is current price in an active market for similar property in the same location and condition.II. When items of investment property are measured at fair values, any movement in fair value is credited to other comprehensive income under the heading revaluation surplus.III. An entity shall continue to measure an investment property at fair value until its disposal if it has previously valued the property at fair value.IV. Transaction costs directly attributable to acquisition of investment property are capitalized as…Under IFRS, which of the following statements describes the fair value model for accounting for investment properties? Question 12 options: a) All investment properties are remeasured at fair value at each reporting date. b) Depreciation is recorded over the investment property’s useful life. c) Gains or losses arising from changes in fair value are recognized in other comprehensive income in the period in which they arise. d) Accumulated gains and losses are recognized in profit or loss in the period in which the investment property is derecognized.
- Under PFRS 3, when is a gain recognized in consolidating financial information? a. In a combination created in the middle of the fiscal year b. In an acquisition when the value of all assets and liabilities cannot be determined. c. When any bargain purchased is created d. When the amount of a bargain purchase exceeds the value of the applicable liability held by the acquired company.8. Income is: a. An amount for payment of services, interest, or profit from investment b. The gain derived from capital or labor c. Any material gain, not otherwise excluded by law, realized out of a closed and completed transaction, where there is an exchange of economic value for economic value, with a specified taxable period, under the method of accounting employed. d. A flow of service rendered by capital by the payment of money from it or any other benefit rendered by a fund of capital in relation to such fund through a period of time.Choose the correct. Under fair-value accounting for an equity investment, which of the following affects the income the investor recognizes from its ownership of the investee?a. The investee’s reported income adjusted for excess cost over book value amortizations.b. Changes in the fair value of the investor’s ownership shares of the investee.c. Intra-entity profits from upstream sales.d. Other comprehensive income reported by the investee.