FINANCIAL AND MANAGERIAL ACCOUNTING
13th Edition
ISBN: 9781337816045
Author: WARREN
Publisher: CENGAGE L
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Chapter 13MJ, Problem 5DQ
To determine
Generally Accepted Accounting Principles (GAAP):
They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).
International Financial Reporting Standards (IFRS):
It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).
To examine: The differences between
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Chapter 13MJ Solutions
FINANCIAL AND MANAGERIAL ACCOUNTING
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- When an investor uses the equity method to account for investments in common stock, cash dividend received by the investor from the investee should be recorded as _____arrow_forwardIf an investor sells an ordinary share at a price above that which he or she originally paid, the investor is said to have earnedSelect one: a.a capital expenditure. b.a capital gain. c.an originating point. d.a dividend. explain well all point of question.arrow_forwardwhat is evaluate the accounting for investments when holding between 20 and 50% of equity securities of an investee from the view of an analyst of financial statements?arrow_forward
- When an investor uses the equity method to account for investments in common stock, cash dividend received by the investor from the investee should be recorded as _____. A. A deduction from the investment account. B. A deduction from the stockholders' equity account, dividends to stockholders. C. Dividend income. D. A deduction from the investor's share of the investor's profits.arrow_forwardWhen an investor uses the equity method to account for investments in common stock, the investor’s share of cash dividends from the investee should be recorded as A deduction from the investor’s share of the investee’s profits. Dividend income. A deduction from the stockholders’ equity account, Dividends to Stockholders. A deduction from the investment account. (AICPA adapted)arrow_forwardChoose the correct.When an investor uses the equity method to account for investments in common stock, the investor’s share of cash dividends from the investee should be recorded as: a. A deduction from the investor’s share of the investee’s profits.b. Dividend income.c. A deduction from the stockholders’ equity account, Dividends to Stockholders.d. A deduction from the investment account(AICPA adapted)arrow_forward
- Under fair-value accounting for an equity investment, which of the following affects the income the investor recognizes from its ownership of the investee? The investee’s reported income adjusted for excess cost over book value amortizations. Changes in the fair value of the investor’s ownership shares of the investee. Intra-entity profits from upstream sales. Other comprehensive income reported by the investee.arrow_forwardWhen an individual owns directly stocks of the company, he has: Group of answer choices a. Direct Financial Interest b. Indirect Financial Interest c. Both Direct and Indirect d. Neither Direct nor Indirectarrow_forwardA dividend which is a return to stockholders of a portion of their original investments is a CHoices; property dividend. liquidating dividend. participating dividend. liability dividend.arrow_forward
- compute for the Equity Shareholder's Net Incomearrow_forwardTrue or false: the investor will be eligible to receive the dividends when he/she buy the company stock on the payment date. Explainarrow_forwardAn investment in an associate is normally accounted for using the equity accounting method. This method requires thatthe investment in the associate is__________.Select one:a.initially recorded at cost and not adjusted thereafterb.initially recorded at cost and then adjusted in each subsequent accounting period to reflect the investor’s share ofthe associate’s profit or loss for the yearc.initially recorded at cost and then adjusted to fair value at each subsequent reporting periodd.initially recorded at fair value and the only adjustments are for dividend income that is declared and paidarrow_forward
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