Answer with true or false. No need explanation. 1. Indirect cost incurred by the entity in business combination is recognized as expense
Q: You are auditing the December 31, 2021, accounts payable balance of one of your firm's divisions. Th...
A: Answer: As a auditor for audit of accounts payable, all the testing of audit procedures is to be per...
Q: Stephco purchased $4,000 worth of merchandise. Transportation costs were an additional $350. Stephc...
A: Total amount paid for merchandise is calculated as below.
Q: Assume that a lawyer bills her clients $15,000 on June 30, for services rendered during June. The la...
A: Under the accrual basis of accounting , revenue is recognised when the services or goods are rendere...
Q: ancelot is a dealer of household appliances. He reported the following in 201 | 2019 P500,000 P800,0...
A: Accrual Basis of accounting means recording transaction on Accrual basis i.e. as and when they inten...
Q: These are the events or transactions that occur subsequent to the balance sheet date and may affect ...
A: Prior period transactions are the transactions which are incurred or occurred in previous years to t...
Q: The following details are found in the incomplete bank reconciliation statement of Phillip Company f...
A: Bank reconciliation statement is prepared to reconcile cash balance as per cashbook and bank balance...
Q: 60751. Mr. XYZ, is negotiating to buy a parcel of property for his business. The seller of the prope...
A: Cost capitalization is a method in which all the expenses incurred on an asset(fixed) to make it ava...
Q: The following are generally non-taxable income, except: A. Stock Dividend B. Compensation for pers...
A: The person would not be taxed if the source of income is a stock dividend, receipt from farming, or ...
Q: Katie must decide which one of the following initiatives she will pursue. Each of the projects will ...
A: In risk management, probability distributions could be frequently used to assess the likelihood. It ...
Q: Timi, a CPA with a monthly salary of Php. 30,000.00, received a Honda Civic from his employer for su...
A: Answer: Gross compensation income is the amount that is received from employer before any deductions...
Q: first column to the last column in the lowest total cost. The number in each column represents the c...
A: The program is given as,
Q: 1. How much of the transactions below should be charged against CELESTINE's Net Income for the year ...
A: Non Cash items- A non-cash item has two dissimilar meanings. In banking, the word is used to express...
Q: Company A Company B Company C Company D Company E Beginning of year $ 64,080 44,215 $ 98,280 $ 36,00...
A: As per accounting equation assets equal to sum of liabilities and equity. The equity gets effected b...
Q: pple issues $5,000,000, 8%, 10-year bonds on January 1, 2020. The bonds pa onds are issued to yield ...
A: A bond would be a deal between a buyer and the firm, state institutions, or government entity issuin...
Q: On December 31, 2021, The Essence Finance Company had P5,000,000 note receivable from Galena Company...
A: When there are certain indications that the recoverable amount from the asset has been declined belo...
Q: Karen finds that many claim forms were rejected because important information was omitted. How might...
A: In each and every situation where ambulatory healthcare is offered, knowing medical insurance seems ...
Q: ACCOUNTING CYCLE: Complete the illustration Problem: On January 1 of the current year Josef Cacdac o...
A: A journal entry is the first step in accounting. It records all business transactions in the account...
Q: Cash Beginning inventory Common stock Retained earnings $17, 600 17,630 (205 units 586) 15,600 19,63...
A: FIFO First in first out method is based on the assumption that the goods are received first and issu...
Q: Required: 1a. What is the amount of equity at the beginning of the year for Company A? 1b. What is t...
A: In accounting, the term "equity" refers to a company's book value, which is the difference between s...
Q: With regard to segregation of duties, rule one is that transaction authorization and transaction pro...
A: Answer: One of most important part of internal control is segregation of duties. It includes that tr...
Q: DRYEYE COMPANY Partial Statement of Cash Flows For the Year Ended October 31, 2021 | Cash Flows from...
A: Cash flow statement means the statement which shows the cash flow in or out of business enterprises ...
Q: Which of the following branches of accounting is often limited to preparing and distributing financi...
A: Accounting is the process whereby the costs and revenues of the business are estimated and recorded....
Q: On January 1, 2018, a company purchased a delivery truck for $45,000 cash. The truck had an estimate...
A: Depreciation expense is the reduction in the value of an asset due to normal wear and tear, the pass...
Q: Record adjusting journal entries for each separate case below for year ended December 31. Assume no ...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: SydMel Ltd Statement of financial position As of 30 June 2020. 2020 2019 Assets ...
A: Cash flow from operating activities refers to the amount of money a company earns from continuing, r...
Q: On January 2, 2021, Rastaman placed P1,000,000 in the 5-year time deposit of Metrobank. The placemen...
A: A time deposit seems to be an interest-bearing bank balance with a predetermined maturity date. The ...
Q: KC Company's Dec. 31, 2021 cash balance is P8,350,000 before possible adjustments for the following:
A: Cash and cash equivalent is a most liquid current asset that is posted under the head current assets...
Q: Ravena Company manufactures office furniture. During the most productive month of the year, 3,500 de...
A: There are two type of costs that are being incurred in business. These are fixed costs and variable ...
Q: Two income statements for Paragon Company follow: Paragon Company Income Statements For the Years En...
A: The horizontal analysis is performed as comparing the current year results with past year results. T...
Q: Angel owned a property costing Php. 2,000,000.00. She exchanged her property with the lot of Princes...
A: At the time of acquisition of assets, sometimes old asset needs to be exchanged and some amount of c...
Q: The net cash provided by operating activities in BLUE Company's statement of cash flows for 2021 was...
A: Cash flows from operating activities is the amount which represents the inflows and outflows of cash...
Q: capital (P100 par value) 5,000,000 5,850,000 premium 1,000,000 1,600,000
A:
Q: The following costs relate to Antonio Industries for the last quarter: Conversion cost Direct materi...
A: Prime costs means cost of direct materials and direct labour used for the business. Total manufactur...
Q: Compute for the carrying value of intangible and other assets recognized in the balance sheet as of ...
A: An intangible asset seems to be anything that isn't tangible yet has value and can be turned into ca...
Q: Penalty costs can be assessed only against the number of units of demand that cannot be satisfied, o...
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...
Q: Determine the Retained Earnings in 2017
A: Retained earnings are those earnings which the company is having retained means which the company do...
Q: 1. What are the two main parts of the body of the income statement known as? Expenses Capital Assets...
A: Lets understand the meaning of income statement. Income statement is a statement which shows the rev...
Q: Journalize the entries to record the summarized operations. Record each item (items a-f) as an indiv...
A: Job costing refers to an accounting method which is used by the company to track the individual cost...
Q: A company has an operating leverage factor of 4. When its sales increase to P500,000, its profit bef...
A: solution given Operating leverage 4 Variable cost ratio 40% Fixed cost ? Whe...
Q: Please tell me more about the relationship of different Financial Statements.
A: Financial statements are those statements which are statements which are reported at the end of acco...
Q: Scenario: You are presented with the following transactions for 2021 from the books of a business. T...
A:
Q: On January 1, 2019,CalderetaCompany purchased 5-year bonds with face value of P8,000,000 and stated ...
A: >Bonds Payable are the source of finance for the companies. >The bondholders are entit...
Q: P60,000 while Partner Y received P100,000. Partner X’s share in residual income after deducting thei...
A: Partnership in the simplest form of business from by two or more person in order to share their inte...
Q: For the 2021 audit of the financial statements, you are tasked to audit EMPLEO Corporation's abilit...
A: Dividends is the part or share of profits that is, being distributed to the shareholders of the comp...
Q: What are the three primary reasons an organization holds cash or cash equivalents?
A: Cash and cash equivalents are those liquid assets which are either in cash or can be converted into ...
Q: hould an organization take a discount of 1.5/10 N/30 on a $9,000 invoice or simply pay the bill when...
A: solution concept credit term 1.5/10 N/30 It means that if the payment is made within 10 d...
Q: Horman Company produced 1,000 units of a product which was sold at a price o 95.00 each. Total selli...
A: Conversion costs seems to be the expenses of transforming raw materials into completed commodities. ...
Q: n January 4, JC sells merchandise costing $2,000 for $8,000 to RM with terms of 3/12, n30. On Janu...
A: Solution Concept Credit term 3/12, n30 means that if the amount is paid within 12 days of the invoic...
Q: Normal cash collection experience has been that 40% of sales are collected during the month of sale,...
A: The cash budget is prepared by the management to estimate the expected cash receipt and cash disburs...
Q: Length of the Lease: Useful Life of the Equipment: Value of Equipment on 1/1/17 Equipment reverts to...
A: Steps to calculate lease payments 1)Determine the property that are to be leased. 2)Find out the int...
Answer with true or false. No need explanation.
1. Indirect cost incurred by the entity in business combination is recognized as expense.
2. PFRS 10 defines control as the power to govern the financial and operating policies as to obtain benefits from its activities.
3. An investor has no power over the investee even if the investor holds the majority of the voting rights if those rights are not substantive.
4. A subsidiary should be excluded from the consolidated statements if the subsidiary operates under governmentally impose uncertainty.
Step by step
Solved in 2 steps
- 1. PAS 28 defines an ‘associate’ as Choices An entity that controls one or more entities. An entity over which the investor has significant influence. A joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. An entity that is controlled by another entity. 2. In accordance with PAS 1, which of the following gains or losses from reclassification of financial assets need not be presented separately in the profit or loss section or the statement of profit or loss? Choices None of these. Reclassification of financial assets out of the FVTOCI measurement category to FVTPL. Reclassification of financial assets out of the amortized cost measurement category to FVTPL. Reclassification of financial assets out of the FVTPL measurement category.Consolidated financial statements are required in which ofthe following situations?a. Only when a company can exert significant influenceover another company.b. Only when a company has a passive investment inanother company.c. Only when a parent company can exercise control overits subsidiary.d. None of the above.Answer with true or false. 1. The non-controlling interest is presented in the statement of financial position as an asset. 2. Foreign subsidiaries need not be consolidated in preparing the consolidated financial statements if they are reported as a separate operating group under segment reporting. 3. Consolidated financial statements is needed if the investor has significant influence over the investee company.
- PLEASE ANSSWER ASAP. WILL DO THUMBS UP. 1. Assuming the Parent entity elects to measure the NCI at proportionate basis, the computation of non- controlling interest in net income of subsidiary is reduced by the following, except: O Amortization of undervalued assets O All of the above O Amortization of overvalued liabilities O Impairment loss of goodwill 2. Which of the following statements is correct? Statement 1: Any unrealized profit or loss made by the subsidiary should be eliminated from its profit. Statement 2: only the group portion of any unrealized profit need to be eliminated. a. both I and II b. I c. Neither 1 or 2 d. IIIn accordance with PFRS 2, Share-based Payment, how should an entity recognize the change in fair value of the liability in respect of a cash-settled share-based payment transaction? Group of answer choices Do not recognize in the financial statements but disclose in the notes thereto. Recognize in other comprehensive income. Recognize in the statement of changes in entity. Recognize in profit or loss.According to AASb 10/IFRS 10, an investment in a subsidiary is not consolidated and must be measured at fair value through profit or loss if: a. all of the above b. the parent elects to treat the investment in the subsidiary as a short-term investment c. the main purpose of the subsidiary is to provide services that relate to the investment activities of an investment entity. d. the parent determines that it is an investment entity.
- Question: 1. Separate legal entity option: A. company is an artificial person which can be sue or be sued in its own name, holds its own property and is liable of the debt. B. assigning of an employee in a position or department for a predetermined period to perform the specific duties of another position. C. assigning different tasks of a process to more than one individual such that no one employee can solely initiate, record, authorize, and reconcile a transaction without the intervention of another. reqiured: please answer this question by matching or choosing the correct accounting concept.Which of the following accounting treatments for costs related to business combination is incorrect? Group of answer choices a. Acquisition related costs such as finder’s fees; advisory, legal, accounting, valuation and other professional and consulting fees; and general administrative costs, including the costs of maintain an internal acquisitions department shall be recognized as expense in the Profit/Loss in the periods in which the costs are incurred. b. The costs related to issuance of financial liability at fair value through profit or loss shall be recognized as expense while those related to issuance of financial liability at amortized cost shall be recognized as deduction from the book value of financial liability or treated as discount on financial liability to be amortized using effective interest method. c. The costs related to the organization of the newly formed corporation also known as pre-incorporation costs shall be capitalized as goodwill or deduction from…The economic entity assumption requires that the activities Select one: a. of a sole proprietorship cannot be distinguished from the personal economic events of its owners. b.of an entity be kept separate from the activities of its owner. c. of different entities can be combined if all the entities are corporations. d.must be reported to the Securities and Exchange Commission.
- Which of the following accounting treatments for costs related to business combination is incorrect? Group of answer choices The costs related to issuance of financial liability at fair value through profit or loss shall be recognized as expense while those related to issuance of financial liability at amortized cost shall be recognized as deduction from the book value of financial liability or treated as discount on financial liability to be amortized using effective interest method. The costs related to issuance of stock or equity securities shall be deducted/debited from any share premium from the issue and any excess is charged to “share issuance cost” reported as contract-equity account against either (1) share premium from other share issuances or (2) retained earnings Acquisition related costs such as finder’s fees; advisory, legal, accounting, valuation and other professional and consulting fees; and general administrative costs, including the costs of maintain an…A Moving to another question will save this response. uèstion 8 Activities between affiliated entities such as subsidiaries must be disclosed in the financial statements of a corporation as O segment analysis significant events O related party transactions O contingent activities A Moving to another question will save this response. ENAccording to PFRS 10A. A parent entity is required to consolidate its subsidiaries only for internal reporting purposes.B. A parent entity is required to consolidate its subsidiaries.C. A parent need not consolidate a subsidiary if the subsidiary’s business is different from that of the parent.D. A parent entity is encouraged but not required to consolidate its subsidiaries.