The net income of the subsidiary account appear

Assignment Help Financial Accounting
Reference no: EM13304270

1 -- On consolidated financial statements, where does the parent's equity in the net income of the subsidiary account appear?
A - On the consolidated income statement, as a deduction from income.
B - On the consolidated income statement, as a revenue.
C - On the consolidated balance sheet, as an equity.
D - Doesn't appear on the consolidated financial statements.

2 -- A parent acquired all of the stock of a subsidiary. The subsidiary had originally issued long-term debt when the market rate of interest was 5%. The market rate if interest for the debt at the date of acquisition is 3%. How does the change in market interest rates affect the consolidated financial statements?
A - Goodwill is lower
B - Acquired long-term debt is valued at a lower amount
C - Future interest expense is lower
D - There is no effect on the consolidated account balances.

Reference no: EM13304270

Questions Cloud

Evaluate the appropriateness of brett''s plan : Brett started a new construction business in August 2014. In connection with the new business, he purchased a new backhoe for $70,000 in September of 2014.
Discuss some of techniques available to reduce risk exposure : Give two reasons stockholders might be indifferent between owning the stock of a firm with volatile cash flows and that of a firm with stable cash flows.
Would any of the events in the process change : Contrast the sales process of their retail store operation with the sales process in an online store environment. Would any of the events in the process change?
How much should you be willing to pay for this stock : If you require a 12 percent rate of return, how much should you be willing to pay for this stock? show work. Ans $38.65, $7.24, $36.73, $24.89.
The net income of the subsidiary account appear : 1 On consolidated financial statements, where does the parent's equity in the net income of the subsidiary account appear?
Compare and contrast the financial leverage : Determine the degree of financial leverage. Understand the impact of financial leverage on the volatility of earnings per share.
How much can they withdraw on his 18th birthday : Students parents established a college savings plan for the student when he was born. They deposited $50 into the account on the last day of each month. The account has earned 10% compounded monthly, tax-free.
The book value of bullen''s accounts : Bullen Inc. acquired 100% of the voting common stock of Vicker Inc. on January 1, 2013. The book value and fair value of Vicker's accounts on that date (prior to creating the combination) follow, along with the book value of Bullen's accounts
What rate will the dividend be taxed : It's a tax problem. john smith (age 65) is single and earns 40000$ per year as a bank examiner. He has no itemized deductions and no dependents

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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