Preparation of consolidated financial statement

Assignment Help Operation Management
Reference no: EM131735417

Merchandise transactions such as sales among members of a consolidated firm are eliminated in the preparation of consolidated financial statements. Is this treatment accurate? Why or why not?

How does it affect the relevance and reliability of information presented to the financial statement users?

Depending on the size of the intercompany transactions that are eliminated, the financial statement activity might be considerably understated. Is this a problem?

Why or why not? How might a potential investor or creditor evaluate a firm differently if intercompany merchandise sales were not eliminated? Does that matter?

Reference no: EM131735417

Questions Cloud

Federal agency hearing and secretary nomination : What do you think about Federal Agency Hearing (VA) and Secretary nomination
Make the choice about throwing the switch : Oh my. It was difficult to make the choice about throwing the switch.
Pre-hire or during employment assessments : Find two large companies (250+ EE's) who utilize a personality test as one of their pre-hire or during employment assessments.
Contingent workers are assuming greater role : Contingent workers are assuming a greater role in today's organization.
Preparation of consolidated financial statement : Merchandise transactions such as sales among members of a consolidated firm are eliminated in the preparation of consolidated financial statements.
Alma dominican girlfriend : Write an introduction paragraph about "Alma Dominican Girlfriend" by Junot Diaz. And "Forgiveness" By Rebecca Brown.
Determining covered interest arbitrage realignments : What are the most difficult issues in determining covered interest arbitrage realignments?
What is the difference between range and pseudorange : How does differential positioning work? What is the difference between range and pseudorange?
Disadvantages of each type of social media : Review the advantages and disadvantages of each type of social media and identify eight best practices.

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd