Answer:
It is a relatively easy method to apply.
Explanation:
When accounting for a subsidiary, equity method is followed, whenever the shareholding percentage is equal or more than 20%.
But here, the parent company uses, initial value method for internal reporting.
Under initial value method the value of investment in subsidiary is recorded at cost, and then adjusted at year end at fair value, this clearly shows the gain or loss at each year end from such investment as per market norms.
There is no statutory requirement to follow such initial value method for internal reporting.
The correct reason therefore, is:
It is a relatively easy method to apply.
Answer: 10/40/40/10
Explanation:
Under the 10/40/40/10 rule, 10% of the employees tend to follow ones own attitudes and values, i.e. they believe that their beliefs are more remarkable than those around them. 40% of the employees try to go along with the organization policies. The other 40% might follow their assigned work group whereas the last 10% tend to take advantage of such circumstances just in case if degree of penalization is lower to that of the benefit and also risk of getting caught is less.
Answer:
C. A contract between the corporation issuing the bonds and the bond trustee, who is acting on behalf of the bondholders.
Explanation:
A bond indenture specifies the contract which is between the bond issuers and bond holders. The contract specifies all the obligations owed by the issuers to the bond holders.
In this case the right definition of indenture would be a contract between the corporation issuing the bonds and the bond trustee, who is acting on behalf of the bondholders.
Hope that helps.
Answer:
The second one
Explanation:
Control through rules and budgets can lead to rigidity and loss of creativity in an organization in a way that it limits change. When all available funds are allocated to specific operational budgets, it may be impossible to procure additional funds, when an opportunity arises elsewhere. Some organizations are therefore working in a way to back their budgeting systems.
Answer:
$6,450
Explanation:
The general ledger of a cash account is presented below:
Cash Account
Date Particulars Amount Date Particulars Amount
April 1 Beginning April 16 Rent expense $460
Balance $3,850
April 3 Service April 20 Salaries and
Revenue $3,400 Wages expense $340
April 30 Ending balance $6,450
The ending balance would be
= Beginning balance + service revenue - rent expense - salaries and wages expense
= $3,850 + $3,400 - $460 - $340
= $6,450