under the equity method, as the owners' equity of an investee company increases through the earnings process, the investment account of the investor company

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Answer 1

Under the equity method, as the owners' equity of an investee company increases through the earnings process, the investment account of the investor company also increases.

The equity method is an accounting approach used by an investor company when it has significant influence over an investee company, typically with ownership of 20% to 50% of the investee's voting stock. Instead of treating the investment as a passive asset, the investor company recognizes its share of the investee's earnings or losses in its own financial statements.

When the investee company generates profits, its owners' equity increases. As a result, the investor company also increases the value of its investment account to reflect its proportionate share of the investee's earnings. This increase in the investment account is recorded as an adjustment to the investor company's equity, reflecting the growth in the investor's ownership interest in the investee.

Conversely, if the investee company incurs losses, its owners' equity decreases. In this case, the investor company reduces the value of its investment account to account for its share of the investee's losses, which decreases the investor's ownership interest in the investee.

Therefore, the equity method ensures that the investment account of the investor company reflects changes in the investee's owners' equity resulting from the earnings or losses generated by the investee.

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Related Questions

Crane Corporation has the following shareholders' equity on December 31, 2021: Shareholders' equity Share capital $10 convertible preferred shares, 10,000 shares authorized, 4500 shares issued $565000 Common shares, 200,000 shares authorized, 86000 shares issued 1720000 Total share capital 2285000 460000 $2745000 Retained earnings Total shareholders' equity The average per common share amount is $8.56. O $20.00. O $12.56. O $5.65.

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The average per common share amount is $12.56. This is calculated by dividing the total shareholders' equity excluding preferred shares by the number of common shares issued.

The average per common share amount is calculated by dividing the total shareholders' equity, which includes both share capital and retained earnings, by the number of common shares issued. In this case, the total shareholders' equity is $2,745,000 and the number of common shares issued is 86,000.

To find the average per common share amount, we divide $2,745,000 by 86,000:

$2,745,000 / 86,000 = $31.91

However, the question specifically asks for the average per common share amount, so we need to exclude the value of the preferred shares. The value of the preferred shares is $565,000.

To calculate the average per common share amount, we subtract the value of the preferred shares from the total shareholders' equity and then divide by the number of common shares issued:

($2,745,000 - $565,000) / 86,000 = $12.56

Therefore, the average per common share amount is $12.56.

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Pompeii, Inc., has sales of $53,000, costs of $24,200, depreciation expense of $2,550, and interest expense of $2,300. If the tax rate is 24 percent, what is the operating cash flow, or OCF

Answers

Answer:

$23,052

Explanation:

The computation of operating cash flow is shown below:-

Before that we have to determine the net income which is

Income statement

Sales $53,000

Cost ($24,200)

Depreciation ($2,550)

EBIT $26,250

Interest expense ($2,300)

Earnings before tax $23,950

Tax (5,748)

(24% × $23,950)

Net income $18,202

Now,

Operating cash flow = EBIT + Depreciation - Tax

= $26,250 + 2,550 - $5,748

= $23,052

It involves developing new products or
improving existing technologies, processes,
designs and marketing to solve problems,
increase efficiency, reach new customers,
and ultimately increase profits.

a. business opportunity
b. entrepreneurship
c. social change
d. socioeconomic
e. livelihood
f. business venture
g. relevance
h. business innovation
i. entrepreneur
j. economy ​

Answers

Answer:

h. business innovation

Explanation:

Business innovation is a term that describes a situation whereby a firm initiates the latest techniques or methods in the production of goods and, or delivery of services.

The purpose is to create a beneficial transition and change in the operation of business activities to gain more profits.

In other words, business innovation involves enhancing existing strategies or exercises, or in some cases beginning afresh.

Hence, going by the definition in the question. The correct answer is BUSINESS INNOVATION: It involves developing new products or improving existing technologies, processes, designs, and marketing to solve problems, increase efficiency, reach new customers, and ultimately increase profits.

Business innovation is the answer.

Business innovation refers to activity company undertakes by implementing new business processes, ideas, products or services with the main aim of increasing efficiency and profit

The bringing up of ideas for creation of new and improved products or services into market is known as Business Innovation

The initiation of Business Innovation activity is possible through intense brainstorming.

Business innovation generally increase a company's efficiency and improve its profitability level.

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An example of a warning sign is:
a) Do Not Enter
Signal Ahead
Road Construction Ahead
Both b and c

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Based on the concept of warming signs and the available options, an example of a warning sign is both B and C.

What is a Warning sign?

Warning signs are a term that is used to alert drivers to situations on or adjacent to the roadway that may be dangerous to the safe movement of a motor vehicle.

Generally, the warning signs are yellow and black or orange and black if they are in a construction area.

In this case, the Signal Ahead and Road Construction Ahead are considered warning signs. However, Do not Enter is considered a Regulatory sign.

In most cases, the shape of these signs are varied and can include diamond, Pentagon, triangular, and square sign shapes

Hence, in this case, it is concluded that the correct answer is option D. Both b and c

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a. what can you tell about an aggregate production function if real gdp per worker increases by 10% in response to all of the inputs increasing by 10%?

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increasing returns to scale.

What is aggregate production ? How to calculate aggregate?

Since economists Cobb and Douglas initially computed and presented the aggregate production function (CDPF) in the late 1920s, it is also known by this name. It immediately demonstrated its importance. For instance, Robert Solow developed his Solow growth model and its following growth formula using Cobb-Douglas functions. An economic model that determines long-term economic growth is the Solow-Swan model, sometimes referred to as the exogenous growth model. The growth of labor or population, a rise in productivity, and capital accumulation are the main drivers of technological innovation. These elements are taken into account by this production function to explain long-term economic growth.

Y = A*F (K, L) (K, L)

Another way to write it is as follows:

Y = AK0.25 L0.75

Y stands for the real GDP, or total output in an economy.

A stands for the technology component. It is a gauge of total economic production.

K represents the economy's entire non-human capital input. It is expressed in terms of money or monetary units.

L represents the total workforce in the economy (human capital).

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Operations management is only about being as cost-effective as possible.
O True
O False

Answers

Answer:

True

Explanation:

Any kind of practice which allows a business or other organization to maximize the use of their inputs by developing products at a faster pace than competitors or reducing defects, for example.

If inflation expectations rise, even without any fundamental economic reasons, it is likely that the expectations themselves O will lead to higher prices and inflation O lead to lower prices and inflation O lead to overshooting O will make monetary policy more accomodative

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In turn, this could potentially lead to overshooting, where inflation rises beyond the target set by central banks. To counteract this, monetary policy may need to become more accommodative, meaning that interest rates may need to be lowered to stimulate demand and keep inflation in check.

When a merchandising company pays cash to purchase inventory: ________-

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When the merchandising company pays the cash to purchase inventory , then (d) None of the answers is correct.

When the merchandising-company pays cash to purchase the inventory ,the total assets of company remains same because it is an asset exchange transaction .

The current asset (cash) will decrease and the other current asset (inventory) will increase, so, net effect of the transaction will have no impact on total assets .

Also, the purchase of inventory is not considered as an expense , because expenses are recognized only when the inventory is sold .

Therefore, neither there is any effect on assets nor on expenses, the correct answer is (d).

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The given question is incomplete , the complete question is

When a merchandising company pays cash to purchase inventory then

(a) the amount of total assets increases.

(b) the amount of expenses increases.

(c) the amount of total assets decreases.

(d) None of the answers is correct.

Which demographic groups does Women in Motion serve?(keep it clear and short)

Answers

The demographic group Women in Motion serve is Women who are all talented and Young giving in their best contribution to Cinema.

What is demographic?

Demographic is referred to defining a set of populations based on the characteristics like age, gender, social status, education, qualification, and so on.

"Women in Motion" has referred to a kind of award which was given to effective young female personalities who are raising the position of women in society and providing a contribution to their growth.

The event has emerged as a go-to platform for starting discussions and influencing perceptions around the representation of women in the arts and entertainment industries.

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In your opinion, which 3 of the 5 common project hazards described in the book have the potential to be the costliest? explain your reasoning.

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1) Integration :

The charges that have gadget integration value in which the employer searching out custom software program improvement whilst spending one thousand million cash for an useless integration.As the mixing entails time consumption, risk and complexity for this reason it's miles taken into consideration costly.

2) Data migration :

There could be a easy estimation for the entire attempt made which could cause area switch from that of the legacy gadget.This consumes time and compatibility of 1 gadget with the other

3) Too-big projects :

Having too big projects may incur lot of value and time, the time and value of integrating the module is a chief undertaking this is hard to address and is costlier.

What is task management?

Project management entails the making plans and employer of a employer's assets to transport a particular undertaking, event, or responsibility in the direction of completion.It can contain a one-time task or an ongoing activity, and assets controlled consist of personnel, finances, technology, and highbrow property.

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The complete question  is-

Project Planning and Implementation

Which three of the five common project hazards described in the book have the potential to be the most costly? Explain why.

1. Integration 2. Data migration 3. Customization 4. Unproven technology/unproven team 5. Too-large projects

Which does federal income tax help to fund

Answers

The federal income tax helps to fund the affairs of the nation both internal and external. These affairs cover defence, Social Security, health programs and social safety net programs.

What is a federal income tax?

The federal income tax is a tax on yearly income for persons, businesses, and other lawfully recognised bodies. All earnings, cash gifts from employers, business income, gambling income, bonuses, and unemployment benefits are subject to a federal income tax.

Therefore, federal income tax helps to run the affairs of a State.

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When the desired shade is reached, the lightener should be removed with:

A. a towel
B. warm water
C. hot water
D. cool water


End papers used in wrapping should be:

A. wet with neutralizer
B. porous
C. non-porous
D. wet down as you work

Answers

When the desired shade is reached, the lightener should be removed with B. warm water.

End papers used in wrapping should be C. non-porous.

What is warm water and  non-porous. ?

Warm water will help to rinse away the lightener and any remaining product residue without damaging the hair or scalp.

Non-porous end papers are designed to prevent hair color or lightener from bleeding through and staining the surrounding hair, while also helping to keep the hair in place during the wrapping process. Porous end papers, on the other hand, may allow product to seep through and can create an uneven or patchy color result. The end papers should be dry and not wet with neutralizer or any other product.

Therefore the correct options are B,C.

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economists believe that people's wants are finite. infinite. irrational. unimportant because needs are more important than wants.

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Economists believe that people's wants are finite.

Economists generally hold the view that people's wants are finite, meaning that they have limits or boundaries. This belief is based on the assumption that individuals have limited resources, such as income and time, which they allocate to fulfill their various wants and needs. While individuals may have diverse desires and preferences, economists acknowledge that there are practical constraints that prevent an unlimited fulfillment of wants.

Economists emphasize the concept of scarcity, which refers to the imbalance between unlimited wants and limited resources. Scarcity necessitates individuals to make choices and prioritize their most essential needs and desired goods and services. The study of economics revolves around analyzing how individuals, firms, and societies allocate their scarce resources to satisfy their wants and needs in the most efficient and effective manner.

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a victim of phishing would most likely be contacted in which form of these ways?

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Answer:

If you got a phishing email, forward it to the Anti-Phishing Working Group at If you got a phishing text message, forward it to SPAM (7726). Step 2.

the sales department at a local company determines that product a will moderately boost sales and have a shorter production schedule, so it is decided that this product will be manufactured and sold without considering other options. in choosing this product, the sales department is

Answers

The action that is been taking by the sales department when they are determining the kind of product that will bring about sales boost with their shorter production schedule and manufacturing of product is Satisficing.

Satisficing can be regarded as a decision-making strategy that is carried out for  satisfactory or adequate result.

This done as opposed to  the optimal solution, satisficing involves taking pragmatic effort to face a task.

Therefore, satisficing is correct answer.

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Which of the following is most likely to be a fixed cost? Multiple Choice wages for unskilled labor shipping charges expenditures for raw materials property insurance premiums

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The most likely fixed cost among the options provided is property insurance premiums. Fixed costs are expenses that remain constant regardless of the level of production or sales. These costs do not change in the short term, even if the business experiences fluctuations in its activities.

Wages for unskilled labor are generally considered variable costs because they can fluctuate based on the number of hours worked or the amount of work produced. Shipping charges are also variable costs because they vary based on the quantity and distance of the goods being shipped. Expenditures for raw materials are typically variable costs as well since the amount of raw materials needed will vary depending on the production levels.

It is important to note that while property insurance premiums are typically fixed costs, there may be exceptions depending on the specific terms and conditions of the insurance policy. It is always advisable to review the policy details to confirm the nature of the cost.

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Julie and Barry Spinos purchased a house for $96,400. They made a 25 percent down payment and financed the remaining amount at 5.50 percent for 30 years. Their monthly payment is $410.66. How much of the first monthly payment is used to reduce the principal?

Answers

Answer: $79.30

Explanation:

Cost of the house = $96400

Down payment = 25% × $96400 = $24100

Mortgage = $96400 - $24100 = $72300

Interest = 5.5%

Time = 5 years

Monthly payment.= $410.66

The interest for first payment will be:

= $72300 × 5.5% × 1/12

= $72300 × 0.055 × 0.08333

= $331.36

Therefore, the amount of the first monthly payment is used to reduce the principal will be:

= $410.66 - $331.36

= $79.30

What action (besides stopping buying apple juice) might Reiko take if the price of apple juice rises above $2.00

Answers

Reiko can quit buying apple juice, but she can also switch to something else, which must cost less than apple juice. Products that can be used in lieu of another product are known as replacement goods.

Replacement Goods are goods that are given to the customer in replacement of defective goods as a result of the warranty these goods must match the replaced goods' specifications and be compatible with earlier iterations of the pack.

The product selected to replace a previous product that has either totally vanished from the market or has seen a decline in its market share in either a particular establishment or the market at large.

Consider that the company works out of a 50-year-old building. The company then spent $5,000 to repurchase the structure. Therefore, it will cost $15,000 to construct the identical building today. Therefore, the building's replacement cost is $15,000.

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A company produces three products from a joint production process:: A, B, and C. As a percentage of total sales value, a represents 50%, B 49.5%, and C .5%. Product C could be considered a:________.

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A company produces three products from a joint production process:: A, B, and C. As a percentage of total sales value, a represents 50%, B 49.5%, and C .5%. Product C might be considered a:_ byproduct

What is joint production processes?

Joint processes are production processes during which the creation of one product also creates other products. it's a process in which one input yields multiple outputs. Joint production processes are common within the agriculture industry, the food manufacturing industry, and therefore the chemical industry.

What does one mean by joint product and by-product?

When the assembly of two or more products of similar value, are made along with same input and process, is named joint product. The term by-product means a product which is incidentally produced, during the processing operation of another product.

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Within the equity section of the balance sheet, any non-controlling or minority interests would be best described as:____.

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A controlling, or majority, investment in a firm, where the investor has voting rights and frequently influences the company's direction, can be contrasted with a non-controlling interest.

An ownership position in which a shareholder holds less than 50% of the outstanding shares and has no decision-making authority is referred to as a non-controlling interest, sometimes known as a minority interest. Potential voting rights are not taken into account while calculating non-controlling interests, which are calculated at an entity's net asset value. Today, the majority of shareholders in publicly traded corporations would be deemed to have a non-controlling interest, with even a 5% to 10% equity ownership being seen as a sizable holding in a single business.

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do any product sub-categories have sales over $75,000, but are not bringing in positive profits? show a quick filter to filter through each category.

Answers

By applying these filters, you can easily identify the product sub-categories with sales over $75,000 that are not bringing in positive profits.

To determine if any product sub-categories have sales over $75,000 but are not bringing in positive profits, you can create a quick filter in a data analysis tool like Excel or Tableau. First, import your data containing product sub-categories, sales, and profits information.

To create a quick filter, follow these steps:


1. Sort the data by sales in descending order to focus on the sub-categories with sales over $75,000.
2. Apply a filter on sales column with criteria "> $75,000" to display only sub-categories with sales exceeding $75,000.
3. Apply another filter on profits column with criteria "< 0" to display only sub-categories with negative profits.

By applying these filters, you can easily identify the product sub-categories with sales over $75,000 that are not bringing in positive profits. Analyzing this filtered data will help you pinpoint areas for improvement and optimize the product portfolio for better profitability.

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Imagine you are a market researcher who works for SaveSmart, a
discount insurance company. The company’s management has become
aware of some dissatisfaction among customers who have switched to
Save

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As a market researcher at SaveSmart, a discount insurance company, the management has assigned me to investigate and address the dissatisfaction among customers who have switched to other insurance providers.

The goal is to understand the reasons behind their dissatisfaction and identify areas where SaveSmart can make improvements to retain customers and enhance overall customer satisfaction. To conduct this research, I would employ various methods such as surveys, interviews, and data analysis. Surveys can be distributed to the dissatisfied customers to gather their feedback and understand the specific issues they faced. Interviews can provide more in-depth insights and allow customers to express their concerns and suggestions. Additionally, analyzing customer data and comparing it with competitor offerings can help identify gaps in SaveSmart's services. Once the research is complete, the findings can be presented to the management along with actionable recommendations. These recommendations may include improving customer service, enhancing the claims process, offering additional coverage options, or providing competitive pricing. By addressing the concerns raised by dissatisfied customers and implementing appropriate changes, SaveSmart can work towards retaining existing customers and attracting new ones, ultimately improving customer satisfaction and loyalty.

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what is the relationship between job satisfaction and performance? group of answer choices they have a correlation of .3 job satisfaction causes people to perform better. it is a spurious correlation. they are only connected when ocb is high.

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The relation between job satisfaction and performance are spurious correlation.

what is the relationship between job satisfaction and performance?

Numerous studies have demonstrated that any organization would benefit from spending money to increase employee satisfaction. Of course, the fundamental justification is that, as a company, you'll want to have contented staff working for you. Employee happiness is one of the best predictors of long-term successful firm performance, according to numerous research and papers.

Performance, which is linked to better earnings, is also associated with high job satisfaction. Employees who are satisfied in their jobs are much more likely to approach their work with a positive attitude and a commitment to excellence.

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Sports and entertainment products are non-perishable.

Answers

No that is false. Because sports and entertainment usually are short lived while they are being performed they are considered perishable.

wich situation would cause the price of a product to fall the most

Answers

The quality of that product I think

how do people progress in a business?​

Answers

Answer:

with the proper leadership skill and hard work

Have a clear plan of what they want to achieve and how they will achieve it with perseverance and hard work

To calculate the number of montly payments required to pay off a loan or meet an investment goal, use the _______ function.

Answers

To calculate the number of monthly payments required to pay off a loan or meet an investment goal, use the nper function.

In finance, lending is the lending of money by one or more individuals, organizations, or other entities to other individuals and organizations, etc. The beneficiary incurs a debt and usually has to pay interest on that debt until that debt is also repaid. to repay the principal borrowed.

The promissory note will typically state, among other things, the principal amount of the loan, the interest rate charged by the lender, and the date of repayment. A loan involves reallocation of assets in question over a period of time, between the lender and the borrower.

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TRUE OR FALSE. a dependent demand item is so called because its demand is dependent on customer preferences.

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FALSE: A dependent demand item is so-called because its demand is dependent on customer preferences.

The statement is FALSE. A dependent demand item is called so because its demand is dependent on the demand for other items, typically finished products, and not directly on customer preferences.

These items are usually components or raw materials used in the production process of the finished product.

The demand for dependent items is driven by the production schedule of the finished goods they contribute to, rather than the preferences of the customers directly.

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Where would you find the Create Table Dialog Box?

Data tab, Get & Transform Data group
Data tab, Outline Command group
Insert tab, Charts gallery
Insert tab, Tables command group

Answers

Answer:

d

Explanation:

took the test

Answer:

D.

Explanation:

correct on edge

Why would an insurance company charge an inexpensive copay when considering claims that will likely be hundreds or thousands of dollars?

Answers

Insurance companies charge an inexpensive copay for certain types of medical services to encourage their policyholders to seek preventive care and early treatment, which can help prevent more serious and costly health problems in the future. By covering the cost of these services upfront, insurance companies can reduce the overall cost of healthcare by avoiding more expensive treatments down the line. Additionally, copays can help incentivize policyholders to use in-network providers and services, which can be more cost-effective for both the insurance company and the patient.
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