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OTHER ASPECTS OF THE CONSOLIDATED BALANCE SHEETThe consolidated balance sheet may require a special approach under the following situations:1) Pre-acquisition losses in subsidiary company on date of acquisition: If the subsidiary company has a loss on the date of acquisition i.e. a debit balance in the retained profits (profit and loss) account, then in computing good will, the entry to cost of control of profit and loss on acquisition 2) Acquisition during the financial period (particularly during the financial period): The holding company may acquire the subsidiary company partway through the financial period such that as at the balance sheet date, the subsidiary company has been held for a period of less than 12 months.3) Group structures: A group structure is the relationship between the holding company and its subsidiaries. There are normally four main types of group structures (apart from the holding company and one subsidiary).
Q. Show danger of high financial gearing? A additional danger of high financial gearing is that a company may move into a loss-making position as a result of high interest paym
Materials used by Company X in producing Division A's product are currently purchased from outside suppliers at a cost of $30 per unit. But the same materials are available from Di
CONVERSION INTO A COMPANY The partners may convert their business and trade in form of a company. This may be due to some of the advantages a company has over a partnership. E.g.
Q. What is Asset? Asset - An economic resource which is expected to be of benefit in the future. Probable futureeconomic benefits attained as a result of past transactions or e
what are methods of calculating depreciation?
petra corporation purchased P4,000 worth of merchandise on account terms 2/10, n?30, FOB shipping point. Prepaid transportation charges of P200 were added to the invoice.
Are revenue and expense accounts permanent accounts and should not be closed at the end of the accounting period?
Common stocks A, B, C, and D had the following quarterly returns. A B C D 0.07 0.05 0.07 0.12
Effect of discharge An order of discharge releases the bankrupt from all disabilities imposed by the bankruptcy (except those which apply for a fixed period after discharge - s
tutorials on sample qustion
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