How does the equity method discourage the manipulation of net income by investors?

Q: llowing information is available for the two production departments (machining and assembly) and one...

A: In this question, we have to calculate the overhead cost of the assembly department cost center. 

Q: Per the CREATE, proprietary educational institutions and non-profit hospitals shall enjoy an income ...

A: Proprietary educational institutions are the private schools which are run and monitored by individu...

Q: What is the process for developing a budgeted balance sheet?

A: The budgeted balance sheet is a report that a firm uses to examine the estimation of assets, liabili...

Q: BE5-3 Prepare the journal entries to record the following transactions on Graff Com- pany's books us...

A: Under perpetual inventory system, Cost is transferred to COGS account as and when sale is recorded.

Q: Accounts receivable Accounts payable Buildings $ 18,000 Long-term notes payable 11,000 Office suppli...

A: Formula: Current ratio = Current Assets / Current liabilities.

Q: 3.14 Cue and Peed entered into a partnership on March 1, 200A. They agreed that Cue, the managing pa...

A: Partner’s equity represents the capital investments made by the partner, drawings made by the partne...

Q: Prepare a statement of cash flows for Forrest Ltd for the year ending 30 June 2022. Notes are not re...

A: Plant account Particulars  Dr.  Particulars  Cr. beginning 100,000 Depreciation 5000 Purchase...

Q: Sheffield Inc. manufactures two products: car wheels and truck wheels. To determine the amount of ov...

A: The question is based on the concept of Cost Accounting.

Q: 1,200,000     Direct expenses    4,000,000     Bills payable        150,000 Net sales        80,000,...

A: The answer has been mentioned below.

Q: If Wilmington used a plantwide predetermined overhead rate based on direct labor-hours, how much man...

A: Predetermined overhead rate is used for allocating overhead costs to job or product. Predetermined o...

Q: Bramble Company purchased equipment for $15600 on December 1. It is estimated that annual depreciati...

A: Depreciation for 1 month (from Dec. 1 to Dec. 31) = Annual Depreciation / 12

Q: Danica Corporation's standard cost system contains the following overhead costs, computed based on a...

A:

Q: 2.    The company is desirous of comparing serval financial transactions and possible outcomes to as...

A: The shareholder' equity section represents the total capital and retained earnings that belongs to t...

Q: On January 1, 2021, PCO purchased 70% ownership of SCO which resulted to a gain on acquisition of P1...

A: PCO purchased 70% ownership in SCO.

Q: The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a rac...

A:  

Q: The term of a "low value lease" may be more than twelve months * True or False?

A: Lease is an agreement which involves renting of an asset or property in return for a monetary consid...

Q: Larned Corporation recorded the following transactions for the just completed month.   $75,000 in ...

A: Solution The journal entries for the month is shown below

Q: if FIFO method) TK Co. manufactures a single product that goes through two processes, mixing and coo...

A: The equivalent units are calculated on the basis of percentage of the work completed during the peri...

Q: Nita Corp.'s Department II is introducing a new product that will use component C. An outside suppli...

A: When Talking about the overall profitability of the company, the departmental transfer price should ...

Q: At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $170,000. It is e...

A:

Q: A draw bench for precision forming and strengthening of carbon steel tubing has a cost of S950,000. ...

A: Straight line method is a method for charging depreciation in which depreciation is charged at a uni...

Q: he activity in the credit card account of Mara for one billing period shows the following transactio...

A:   The activity in the credit card account of Mara for one billing period shows the following transac...

Q: The Company allows customers to pay with credit cards. The credit card company charges the Company 4...

A: Cash received = Sales - Credit card charges where, Credit card charges = Sales x Credit card charges...

Q: If closing entries are prepared and posted correctly, a post-closing trial balance will show: a cre...

A: Closing entries are prepared to close the nominal accounts for the period. After closing all the nom...

Q: Which of the following set of taxes are prohibited? I. Imposition at the same time of income tax and...

A: Income tax is direct tax and value added tax is indirect tax so direct and indirect tax can be impos...

Q: At the beginning of Year 1, Copeland Drugstore purchased a new computer system for $170,000, It is e...

A: Given, Cost of asset = $170,000 Useful life = 5 years Salvage value = 30,000   Under straight line m...

Q: QUESTION 1 The financial statements identify financial position, performance and changes in cash flo...

A: A) Limitations of financial statements  Financial statements are based on historical cost. Financia...

Q: of RM1.00 each and 1,000,000 ordinary shar Energy Sdn Bhd was recorded with an authorized capital of...

A: In order to accumulate capital a company can issue ordinary shares as well as preference shares. Pre...

Q: 2. Management felt that because the data revealed some customers require a disproportionate share of...

A: Activity based costing is the allocation of overhead cost on the basis of the most appropriate cost ...

Q: Which of the following items of interest expense may be deducted from gross income? Interest deducte...

A: Interest expense will be allowed as a deduction if such Expense is incurred in the ordinary course o...

Q: Following are the budgeted income statements for the second quarter of 2019 for SeaTech Inc.:     A...

A: Budget: Budget is a plan that a company drafts in order to forecast their incomes and expenditures. ...

Q: McDermott Company has developed a new industrial component called IC-75. The company is excited abou...

A: 1) Reference value = Product cost + Maintenance cost                                = $1200 +$200   ...

Q: ACTIVITY 3: Entries for Purchase of Goods On January 3, 2020, Kim Taehyung made a purchase. The list...

A: The transaction of inventory relating to purchase and sale can be recorded by any of the two methods...

Q: 1. From the data above, calculate the Ending Inventory (quantity and cost), Cost of Goods Sold, and ...

A: PT Water Canon sells two types of water pumps. One is for factory use and other is for housing use. ...

Q: Given the building layout for Store A, Store B, Store C, and Store D, what portion of the shared $60...

A: Apportionment of cost is allocating the total cost in the different sectors of the organization on t...

Q: At 30 June 2002 a company had Klm 8% loan notes in issue, interest being paid half- yearly on 30 Jun...

A: Date Description Interest Calculation Interest Expense         30-Sep-02 Interest Expense on 250...

Q: Sheffield Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning De...

A: When a lease has a buying option attached to it then it is classified as a finance lease. The lease ...

Q: Given the following cost and activity observations for Leno Enterprises' utilities, use the high-low...

A: Variable cost per Machine Hours= (Highest activity cost - Lowest activity cost) / (Highest Machine H...

Q: A combined set of operational budgets and a set of financial budgets for the entire organisation is ...

A: Lets understand the basics. Master budget is a budget which is combined budgets for whole of the org...

Q: On June 30, 2015, the balance sheet of Western Marketing, a partnership, is summarized as follows: S...

A: A partnership is a legally binding contract between two or more persons to run and manage a business...

Q: T/F. A major contentious issue with Internal Service Fund is the distribution of losses to various c...

A: internal service fund is a fund that is used in the generally the government accounting in order to ...

Q: The Welding Department of Concord Company has the following production and manufacturing cost data f...

A: When the materials are added at the beginning of the process they are considered to be 100% complete

Q: primary purpose of preparing a trial balance is to determine that: The ledger contains an equal pes...

A: In trial balance: Number of ledger accounts in debit and credit column can differ. Debit and credit...

Q: SBD Phone Company sells its waterproof phone case for $90 per unit. Fixed costs total $151,200, and ...

A: Formula: Contribution margin per unit = Selling price per unit - Variable cost Per unit

Q: 6. An insurance company has an obligation to pay the medical costs for a claimant. Average annual cl...

A: Step 1:Calculation of Inflated Value of Claims for next 16 years          For Example          Claim...

Q: The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a rac...

A:

Q: When fair value is used in the measurement of assets in the financial statements, current GAAP provi...

A: Fair value is used in the measurement of assets in the financial statements, Under current GAAP prov...

Q: Credit Sales $675,000 Accounts Payable $31,000 Accounts Receivable $64,000 llowance for Uncollectibl...

A: Solution: uncollectible accounts are those accounts which are estimated to be uncollectible. It can ...

Q: P9. The following information is available for Delta Company as of April 30, 2014 GENERAL LEDGER AD...

A: Lease rentals are the expense for the lessee that is to be paid till the end of the lease term for u...

Q: Citricacid plc budgets during its first year of operations to produce and sell 38,160 litres of prod...

A: The profit is calculated as difference between sales revenue and total costs.