Question : 71. Often, the parent does not own 100% of the voting : 1245758

 

 

71. Often, the parent does not own 100% of the voting stock of a consolidated subsidiary. The parent refers to the owners of the remaining shares of voting stock as a  A. noncontrolling interest.B. nonconsolidated group.C. consolidated subsidiary.D. noninfluential interest.E. nonvoting interest.

 

72. The consolidated income statement shows A. all of the parent’s and the subsidiary’s revenues less all of the parent’s and the subsidiary’s expenses, plus or minus intercompany sales, expenses, gains, and losses, which equals consolidated income. B. The consolidated income statement shows the portion of this consolidated income to which the noncontrolling shareholders have a claim, typically an amount equal to the subsidiary’s net income multiplied by the noncontrolling shareholders’ ownership percentage.C. The consolidated income statement shows the portion of this consolidated income to which the parent company shareholders have a claim.D. all of the aboveE. none of the above

 

73. The usual criterion for preparing consolidated financial statements is voting control in the form of majority ownership of common stock. However, for some entities common stock ownership does not indicate control because the common stock of the entity lacks one or more of the economic characteristics associated with equity. U. S. GAAP refers to such entities as a _____ entity. A. variable interestB. special interestC. thinly capitalizedD. securitized financialE. nonsecuritized financial

 

74. The usual criterion for preparing consolidated financial statements is voting control in the form of majority ownership of common stock. However, for some entities common stock ownership does not indicate control because the common stock of the entity lacks one or more of the economic characteristics associated with equity. Which of the following is/are true? A. U. S. GAAP refers to such entities as a variable interest entity (VIE). B. If the invested equity is so small that the entity requires other financial support to sustain its activities, it meets the criteria for a variable interest entity.C. If the equity owners lack meaningful decision rights, it meets the criteria for a variable interest entity.D. choices a and b, onlyE. choices a, b, and c.

 

75. Consolidated financial statements are typically prepared when one company has A. accounted for its investment in another company by the equity method.B. significant influence over the operating and financial policies of another company.C. the controlling financial interest in another company.D. a substantial equity interest in the net assets of another company.E. All of these answer choices are correct.

 

76. Marley Company had the following portfolio of securities at the end of its first year of operations: 

Year-End

 

 

 

 

 

 

 

A

Trading

$18,000

$23,000

B

Trading

$25,000

$27,000

 

 

 

 

 

(1)

Provide the entry necessary to adjust the portfolio of securities to market value.

 

 

(2)

After adjusting the securities to market, Marley elects to reclassify Security B as an available-for-sale security. On the date of the transfer, Security B’s market value is $26,500. Provide the journal entry to reclassify Security B.

 

 

 

77. What role does management intent play in the accounting treatment of marketable equity securities? 

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more