When the Company Trades with an Investment in Associate, the Reported net income of the Parent Company should report the Intercompany transaction as? (1 Point) -As Inventory -An eliminated Entry -As Expense -As income

When the Company Trades with an Investment in Associate, the Reported net income of the Parent Company should report the Intercompany transaction as? (1 Point) -As Inventory -An eliminated Entry -As Expense -As income

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 9MC: Which of the following is the principle that a company must recognize revenue in the period in which...

See similar textbooks

Related questions

Q: How is the investor’s share of gross profit on intra-entity sales calculated? Under the equity…

A: The share of investor is calculated in the following manner in an intra-entity sale: Investor's…

Q: How can I find a company's: Total Asset Turnover inventory Turnover Measures Accounts Receivable…

A: Formula for finding Total Asset Turnover is shown as follows: Where in – Sales are taken after…

Q: Direct cost incurred in a business combination are A. Capitalized B. Expensed C. Capitalized,…

A: Cost is the total expenditure incurred in an organisation during an accounting year. It includes…

Q: Which of the following accounting treatments for costs related to business combination is incorrect?…

A: Costs associated to the establishment of the newly created corporation, also known as…

Q: The income from an equity method investee is reported on one line of the investor compa income…

A: Investment income in equity method is return on invested amount. It is treated as reduction in the…

Q: It is a receivable financing activity where the Entire Receivable's ownership is sold to the Factee…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Defined by IFRS 2 as a share-based payment transaction in which the entity acquires goods or…

A: The question involves transaction in which the entity acquires goods or services either as…

Q: a. What is the goodwill or gain on bargain purchase arising from business combination? b. What total…

A: Goodwill is the excess value of Purchase consideration over the fair value of the net assets…

Q: It is generally agreed that sales revenue should only be ‘realized’ and so ‘recognized’ in the…

A: Accrual Basis of Accounting: Accrual Basis of accounting refers to the accounting, where the…

Q: Please answer the following questions relating to unrealized profit in a business combination. 1)…

A: Unrealized gains are prospective profits that exist on paper as a consequence of an investment. This…

Q: Which of the following nonmonetary exchange transactions may result in recorded gains or losses? A)…

A: Non monetary assets exchange represents swaping of non-monetary assets between two entities.…

Q: Information about a segment of the business that a company sells, abandons, or otherwise disposes of…

A: Discontinued operations are sections of a company's primary business or product line that have been…

Q: hen the Company Trades with an Investment in Associate, the Reported net income of the Parent…

A: Solution: When the Company Trades with an Investment in Associate, the Reported net income of the…

Q: Payment for acquisition of merchandise antory are ren orted as investing aporte

A: Payment for acquisition of merchandise inventory is done as a part of normal business operations.…

Q: Which of the following transaction is not recorded in the general journal? Select one: A. All of…

A: Correct option is A i.e. All of the above

Q: Profits on sale of inventories between Parent and Subsidiary Companies is when goods are held still…

A: Sale and Purchase of Inventory between Parent and subsidiary company is realized and added to…

Q: Which one of the following will increase shareholders' equity, all else held constant? Select…

A: Shareholders/ Owner’s equity: The shareholders are the owners of the company and the shareholders…

Q: (TCO B) How are accounting for direct costs, indirect costs, and issuance costs reflected under the…

A: According to IFRS 3 the acquisition method is also called the purchase method which is used for all…

Q: How would you differentiate expenses and Losses? A Expensen is gross infow of ecanomic benefits…

A: SOLUTION- EXPENSES IS AN INCURRED COST THAT HAS BEEN CONSUMED IN ORDER TO EARN REVENUES . EXAMPLE -…

Q: Under PFRS 3, when is a gain recognized in consolidating financial information? a. In a combination…

A: Introduction:- The merger and purchase of several smaller enterprises into a few considerably bigger…

Q: When inventory is held on consignment it should be? -Derecognized -Reported as cost of goods…

A: As per guidelines, Only one question is answered when another question is not interlinked with the…

Q: Which of the following statements about post-acquisition earnings is incorrect? А. They are the…

A: Holding company A holding company refers to the company that holds and controls another company. The…

Q: NU Corporation declares and distributes dividend that is a result of current earnings. How will the…

A: Solution Note : As per the Q&A guideline we are required to answer the first question only…

Q: cost of holding inventory *

A: 1st answer :- Cost of Debt 2nd answer :- Carrying cost

Q: The effects of purchasing inventory on credit are to:a. increase assets and increase liabilities.b.…

A: Inventory is the very important asset for the business. It can be purchased in cash or on credit.

Q: difference between the cash basis and accrual basis of accounting

A: In cash basis of accounting, receipts and payments are treated as income and expenses respectively.…

Q: Under the cost method, dividends from the subsidiary to the parent Oa. are recognized in income when…

A: Certain investments are recorded in a company's financial statements using the cost method of…

Q: 1. Sales journal must contain the following: * A) Date, Name and Address of Buyer, Sales Invoice or…

A: Sales journal also known as sales day book records credit sales. Cash sales are recorded in the cash…

Q: - Which of the following is the main operating expense of the business ? a) Cost of Merchandise…

A: Operating expenses are the expenses that a business incurs to carry on normal business operations.…

Q: Which of the following items affect equity without going through the income statement? Group of…

A: A) Purchase of treasury stock decreases equity and assets and not dealt in income statement. B)…

Q: Merchandise inventory is * reported under the classification of O Property, Plant, and Equipment on…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: Indicate the effects of the transactions listed, on current assets, current ratios and net income.…

A: Debit what comes in, Credit what goes out. Debit the receiver, Credit the giver. Debit all expenses…

Q: Which of the following results in an increase in the Equity in the Investee Income acct. when…

A: Equity of the investor means the amount that is invested by the investor in the company. Equity…

Q: The primary source of revenue for a wholesaler is Oinvestment income. service fees. O the sale of…

A: The primary source of revenue is the main sources of income generated through main course of…

Q: Genesis Enterprise sold merchandise on account. This transaction will affect the O a. balance sheet…

A: A balance sheet is a financial statement that represents the financial position of a company as on a…

Q: 1) Merchandise invested by an entity under a joint operation agreement should include an entry of…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Assume an income statement with the following classifications: Revenues Cost of goods sold…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: When a company exchanges machinery and receives a trade-in allowance greater than the book value,…

A: Solution: When a company exchanges machinery and receives a trade-in allowance greater than the book…

Q: Comprehensive income consists of O operating income + other income and losses net income + other…

A: please like the answer your response matters comprehensive income consists of other comprehensive…

Q: O obligations to transfer ownership shares to other entities in the future. deferred credits that…

A: Solution: Liabilities are "obligations arising from past transactions and payable in assets or…

Q: To compute tangible book value, an analyst wouldA . add goodwill to stockholders’ equity.B . add all…

A: The total assets of a firm is comprised of tangible assets and intangible assets. Tangible assets…

Q: Merchandise invested by an entity under a joint operation agreement should include an entry of a.…

A: Whenever an investor invests in a joint operation. The investor debits the amount of investment made…

Question

When the Company Trades with an Investment in Associate, the Reported net income of the Parent Company should report the Intercompany transaction as?

(1 Point)

-As Inventory

-An eliminated Entry

-As Expense

-As income

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

When the Company Trades with an Investment in Associate, the Reported net income of the Parent Company should report the Intercompany transaction as? As Expense As Inventory An eliminated Entry As income
The Trading Account shows the result of which of the following a Buying and selling of goods O b. Non-operating incomes and expenses C Assets and liabilities O d. Net profit or net loss for the sole trader
A seller recognizes the amount of returns from right to return sales as a/an ________. Group of answer choices expense revenue asset liability
IDENTIFICATION OF AN ASSETS, LIABILITY, EQUITY, INCOME, EXPENSES or WITHDRAWAL For each of the following instructions, indicate the following: ASSETS- if the transaction results to an asset LIABILITY- if the transaction results to a liability EQUITY- if the transaction results to an equity INCOME - if the transaction results to an income EXPENSE - if the transaction results to an expense WITHDRAWAL- if the transaction results to a withdrawal N/A- if the transaction does not result to any of the elements. Sale of P10,000 goods for P7,000 cash. Contribution of land and building from the owner to be used as the new business office. Receipts of goods from supplier with a billing invoice Receipt of cash from clients for services to be provided in the future
When does a company record the transfer of accounts receivable as a sale? As a secured borrowing (a liability)?
What is the impact on the accounting equation when a sale occurs? A. both sides increase B. both sides decrease C. only the Asset side changes D. neither side changes
Using accrual accounting, when is revenue recognized?A. When cash transfers B. When the performance obligation is fulfilled C. When products is received FOB shipping point D. When the products is shipped FOB destin
Is sales listed as liability equity revenue expense or an account
In 20X1, FYY Ltd. purchased 2,400 shares of Humor Inc. for $74,400 plus $2,400 in commission. The shares had a fair value of $88,000 at the end of 20X1, $95,900 at the end of 20X2, and $11,850 at the end of 20X3. In 20x4, the shares were sold for $102,700 less $2,400 in commission. In each of 20X1, 20X2, and 20X3, dividends of $5,760 were received. Required: 1. Prepare journal entries for 20X1 to 20X4, (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Assuming FYY reports using ASPE and the cost method. View transaction list Journal entry worksheet 2 3 4 5 Record the investment made in Humor Inc. Note: Enter debits before credits. Transaction General Journal Debit Credit 20X1 Record entry Clear entry View general journal
A potential offering price for a company is computed by adding the estimatedgoodwill to the ______________?a. book value of the company's net assets.b. book value of the company's net identifiable assets.c. fair value of the company's net assets.d. fair value of the company's net identifiable assets. explain answer
Which of the following terms is used when assuming a business will continue to operate in theforeseeable future?A. separate entity conceptB. monetary measurement conceptC. going concern assumptionD. time period assumption
Which of the following accounting principles prescribes that a company record its ex- penses incurred to generate the revenue reported? A) Going-concern assumption. B) Expense recognition (Matching) principle. C) Measurement (Cost) principle. D) Business entity assumption. E) Consideration assumption.