Finance Questions
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True or False: Consolidation Entry TL removes the gain on sale from an intra-entity land sale because the land remain under the control of the consolidated entity
Because the individual companies comprising a consolidated entity frequently maintain separate accounting records, the effects of intra-entity inventory transfers
When the parent applies the equity method and routinely transfers inventory downstream to its 80% owned subsidiary, any intra-entity gross profits remaining consolidated entity's ending inventory
Similar to gross profits from intra-entity inventory transfers, the income effect of a Consolidation Entries is allocated to the noncontrolling interest for
How does the equity method adjust the parent's Equity in Earnings account for intra-entity gross profits in beginning inventories from upstream sales to an 80% owned affiliate
In preparing consolidated financial statements, the gross profit or loss recorded by individual affiliates for intra-entity asset transfers is
After combining the individually recorded revenues of a parent and subsidiary, what is the effect on consolidated revenues of intra-entity inventory transfers
When the parent applies the equity method and routinely transfers inventory downstream, Consolidation entry *G involves a credit to COGS to recognize the intra-entity gross profit in beginning inventory and a debit to
When the parent applies the equity method and routinely transfers inventory downstream, which of the following consolidation entries are sometimes needed to bring the Investment in Subsidiary account to a zero balance?
Which of the following Consolidation Entries has the net effect of decreasing the current period's consolidated net income
True or false: Intra-entity inventory profits resulting from upstream transfers affect the consolidated net income allocation to both the controlling and noncontrolling interests
Company A accounts for its investment in subsidiary using the equity method. Company B uses the initial value method. Both companies have intra-entity gross profits in their consolidated inventories form downstream sales. Comparing Exhibits 5.6 and 5.4 shows _________ difference in consolidated totals resulting from the investment accounting (equity vs. initial value) method choice
In the presence of a 10% non controlling interest, how much intra-entity gross profit remaining in ending inventory should be eliminated in consolidation
True or false: The parent's accounting method choice (e.g. equity vs. initial value method) has no effect on the ultimate totals reported in consolidated financial statements
Consolidation Entry G credits COGS in the year following transfer because the beginning inventory component of COGS is
Because consolidation worksheet entries are not posted to any affiliate's individual accounting records, intra-entity ending inventory gross profits from the previous year appear in the subsequent year's beginning inventory of the affiliate who now possessed the inventory. To correct for the presence of intra-entity gross profits in beginning inventory, Consolidation Entry *G...
used to determine if a person is credit worthy
allows people to use money they don't have
legal agreement between a lender and a borrower
Is your FICO score and your credit score the same thing